Planned individual giving

The percentage of donors giving in a planned and regular way to charity, through methods such as such as direct debits, payroll giving, and membership fees, is increasing (currently standing at 37%, up from 34% in 2006/07).  This makes up 31% of the total given in an average month.[1]  However, despite this rise, there has been a limited drive by charities to shift giving towards more planned methods of giving.

What are the implications?

  • Increase in regular income allows VCOs to be more effective in their financial planning.
  • Although giving could decrease in an economic downturn, planned giving is expected to be more resilient as it takes more effort to cancel.
  • Donors require an increasing level of information about VCOs before deciding how much to give and who to.
  • VCOs miss out on potential income unless they can encourage more planned giving and convert more one-off payments into regular donations.

Moving forward

Planned individual giving can make up a significant proportion of a VCOs funding mix:

  • Do you explain to donors why it is valuable for giving to be planned?
  • Is it easy for donors to set up regular payments?  For instance, can they do this from your website?
  • Does planned individual giving fit into your fundraising strategy?  Do you need an appointed fundraiser or volunteers to help drive up planned individual giving?

Want to know more?

The 21st Century Donor

Published by: nfpSynergy

Date: 2007

Format: PDF

What is it? This report gives an analysis of the characteristics of the modern donor. It is largely based upon nfpSynergy's Charity Awareness Monitor together with focus groups and other research carried out for related projects.

How useful is this? The report is intended to help charities plan fundraising strategies. It is a useful resource for this and for those looking for a broader understanding of giving habits.

Other comments:

Charities make plans for 50 per cent tax rate

Published by: Third Sector Magazine

Date: May 2009

Format: Web

What is it? This article explores the potential effects of the 50% tax rate on charitable giving.

How useful is this? The impact of tax rates may be more significant in planned giving, making this an important consideration for this driver.

Are small charities at risk from the decline in cash giving?

Published by: Third Sector Magazine

Date: January 2009

Format: Web

What is it? This article gives two opinions on the likely effects of the current economic climate on giving. Patrick Cox of the Small Charities Coalition answers the title question “Yes”, while Karl Wilding of NCVO gives the opposing argument.

How useful is this?  The article provides a useful starting point for considering these issues but does not provide data to establish a firm answer.

UK Giving 2009

Published by: NCVO/CAF, partnership between two infrastructure charities

Date: September 2009

Format: PDF

What is it? This report provides an overview of charitable giving in the UK, mainly based on an annual survey. This is an annual report so also helps identify trends.

How useful is this? There is some data on planned giving although this is not the main focus of the research.

[1]NCVO/CAF, 2009, UK Giving 2009: An overview of charitable giving in the UK, 2008/09

Last updated at 14:29 Thu 24/Sep/09.


How will this affect your organisation? Have you considered it during your strategic planning? Can you share any interesting relevant links?

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