13 Feb 2015
Direct debit gives charities more control over fundraising
Is your charity still collecting donations by Standing Order? Did you know that Direct Debit gives you more control?
Make the switch with Woods Group.
Are you still collecting donations by Standing Order? Did you know that Direct Debit gives you more control?
A Standing Order puts control in the hands of your supporters and this can make it difficult to make updates and changes. With a Direct Debit, both your charity and your supporter are granted flexibility, making it easy to update and amend.
What are the benefits for charities?
There are a number of ways that Direct Debit payments are better in terms of overall convenience for a charity, the most significant of which have to do with internal reporting and forecasting of income. As the charity is in control of approving a Direct Debit, you can report planned income more accurately, by knowing exactly when funds will hit your bank account.
You can also represent unpaid Direct Debits should the occur. A sensible and cost effective strategy based on the fact that over 60% of represented Direct Debits are successful.
Direct Debit also gives your charity more control over the options you can offer such as donation tiers, upgrades, additional lottery chances, payment holidays etc.. This makes it easy for supporters to change or bump up their donation directly (even through your website) maximising income and helping to cultivate supporter loyalty.
What are the benefits for supporters?
Direct Debit is more convenient for your supporters, too. It saves time and gives them peace of mind, knowing that their donations are collected regularly once your charity has set it up for them. They don’t have to go through their bank first and set it up themselves.
If you offer them a choice of payment dates and frequencies, they’ll appreciate the flexibility and the fact that they can easily access these options through your organisation.
Direct Debit is also great for engendering trust. Payers are protected by the Direct Debit Guarantee, which requires your organisation to be monitored and vetted. It’s a secure form of payment and instances of fraud are almost non-existent, so supporters know that their money is in good hands.
Reconnect with your supporters
Switching to Direct Debit is a great opportunity to touch base with your supporters. Give them an update on your fundraising activities, and even encourage them to upgrade their donation when they make the switch! Most of all, let them know how Direct Debit benefits them and does not take away their control. As loyal and engaged supporters they will also be reassured by the benefits your charity achieve.
All in all, Direct Debit frees you up to focus on the most important task: fundraising. If you don’t currently offer Direct Debit, the Woods Group can assist you in switching from the less manageable method of Standing Orders, for greater security, flexibility, and convenience.