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| Direct charity payments declining | Direct charity payments declining |
| (about 5 hours later) | |
| The number of charity donors cancelling the direct debit payments they make to worthy causes has increased during the recession, research shows. | The number of charity donors cancelling the direct debit payments they make to worthy causes has increased during the recession, research shows. |
| Average monthly cancellations rose from 3.32% in 2007/08 to 4.64% in 2008/09, said Rapidata, which handles four million payments for charities a year. | Average monthly cancellations rose from 3.32% in 2007/08 to 4.64% in 2008/09, said Rapidata, which handles four million payments for charities a year. |
| The average monthly cancellation rate in 2008/09 exceeded 5% four times. | The average monthly cancellation rate in 2008/09 exceeded 5% four times. |
| Scott Gray, Rapidata managing director, said it showed charities needed to focus on new ways of retaining donors. | Scott Gray, Rapidata managing director, said it showed charities needed to focus on new ways of retaining donors. |
| The research looked at the company's total business from more than 160 charities from April 2003/04 to March 2008/09. | The research looked at the company's total business from more than 160 charities from April 2003/04 to March 2008/09. |
| Mr Gray said: "Our analysis shows that from April 2003 until the summer of 2007, there had been an overall fall in average monthly cancellation rates, which was a very positive trend. If they clearly want to cancel, the charity should acknowledge that cancellation as soon as possible and and work on attracting them back Scott Gray | Mr Gray said: "Our analysis shows that from April 2003 until the summer of 2007, there had been an overall fall in average monthly cancellation rates, which was a very positive trend. If they clearly want to cancel, the charity should acknowledge that cancellation as soon as possible and and work on attracting them back Scott Gray |
| "But that trend was abruptly halted and violently reversed after Northern Rock. | "But that trend was abruptly halted and violently reversed after Northern Rock. |
| "Cancellation rates skyrocketed last summer so that, for example, in July, 54% more people cancelled their direct debits than in the average July for the pre-recession period, while in December, there were 67% more cancellations than for the average pre-recession December. | "Cancellation rates skyrocketed last summer so that, for example, in July, 54% more people cancelled their direct debits than in the average July for the pre-recession period, while in December, there were 67% more cancellations than for the average pre-recession December. |
| "There are a number of things charities can do to keep donors on board, including giving them the option to reduce the amount they pay, or allowing them to take a payment or gift holiday. | "There are a number of things charities can do to keep donors on board, including giving them the option to reduce the amount they pay, or allowing them to take a payment or gift holiday. |
| "If they clearly want to cancel, the charity should acknowledge that cancellation as soon as possible and work on attracting them back." | "If they clearly want to cancel, the charity should acknowledge that cancellation as soon as possible and work on attracting them back." |
| Last month the government announced it would put £40m towards helping charities to assist people through the recession. | Last month the government announced it would put £40m towards helping charities to assist people through the recession. |
| The plan, for England and Wales, will include awarding grants to deprived areas, establishing a volunteering scheme and creating funds to help non-profit organisations merge. | The plan, for England and Wales, will include awarding grants to deprived areas, establishing a volunteering scheme and creating funds to help non-profit organisations merge. |
| Some charities have already been forced to cut staff and reduce services as they try to cope with the economic downturn. | Some charities have already been forced to cut staff and reduce services as they try to cope with the economic downturn. |
| A survey of 500 charities by the Charity Commission suggested one in four had seen donations drop, while one in five said they had experienced a surge in demand for their services. | A survey of 500 charities by the Charity Commission suggested one in four had seen donations drop, while one in five said they had experienced a surge in demand for their services. |