Brits embrace continuous giving
13 July 2005
Source: HBOS press release
This July marks the 20th anniversary of the Live Aid concert the focus of a decade when charitable donations hit the headlines and the worlds of television and music turned giving into a much more entertaining experience.
The event was watched on television by over 1.5 billion people around the world and led to donations and royalties of over $140 million1. But it will also be remembered as part of an 80s explosion of charity events and records.
In 1985 Pudsey Bear first fronted the BBCs Children in Need Appeal which had just taken on its current telethon format. The first Red Nose Day was in 1988.
Ian Corfield, head of Halifax Card Services, comments: 'Looking back to when Live Aid was staged the way people choose to donate now has changed dramatically. Technology has given rise to what can be termed continual giving. Although street and door-to-door collections are still the most common way for people to donate money to charity more and more people are choosing to donate via other means.'
'Continuous giving is when people choose to donate on a regular basis be it by setting up a standing order every month or using a credit card that makes a donation to charity every time you make a purchase with it.'
According to the Charities Aid Foundation, total payroll giving in the UK has grown from £37 million in 1999/00 to around £91 million in 2003/04. This figure is expected to rise further as many companies do not yet have payroll giving.
Halifax charity cardholders* have helped raise more than £16 million since their launch more than £1 million in 2004 alone.
Donating is easier than you think:
Between December 2003 and December 2004 the Charities Aid Foundation reported an 89% increase in donations made through its website2. During the Tsunami Appeal, 61% of people who gave to the appeal online did so for the very first time; 41% of those who used a debit or credit card over the phone were also doing so for the first time and 1% of donors used text messaging, all of whom did so for the first time3.
Ian Corfield continues: 'There are many ways for people to make charitable donations. If people want to make a donation on a regular basis they need to decide which mechanism best suits their circumstances.'
Direct Debits
Many of the major charities will now allow donors to set up regular direct debit contributions which means you can contribute in a more convenient and planned way. This method is also useful for charities in allowing them to budget ahead and has the advantage over one-off cash donations in that permission for gift aid, which allows charities to reclaim tax, can be set up.
Give As You Earn
Payroll giving schemes allow employees of participating organisations to contribute regular and tax-free amounts directly from their pay. They also allow businesses to support their employees tax-efficient giving.
CHARITY CARDS
A number of banks and building societies now issue credit cards in association with well-known charities. Although the amounts vary, most cards feature an initial donation made to the charity when the card is issued as well as a continuous donation thereafter every time the card is used for a purchase.
Gift Aid
UK tax payers who make a donation, either regular or one-off, to a recognised UK charity, can use Gift Aid to increase their contribution. If the donor gives permission for Gift Aid, the charity can reclaim the tax from the Inland Revenue and add it to the balance.
Online Donations
The Office of National Statistics estimates that 62% of UK adults now have Internet access and charities are increasingly recognising the potential to tap into online giving. CAF research has identified a new group of charity Internet supporters who look to give to charities in a way that suits their e-working lifestyle4.
Charitable Trusts
A personal charitable trust is a way to contribute regularly to a charity through earning incom
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