SMALL CHARITIES LOSING OUT TO BIG NAMES AS POLL REVEALS DROP IN DONATIONS
We don’t want to say that we at Best Funeral Plans can solve this problem overnight, but if you are responsible for your charities fund raising, a brief chat might make a very big difference! We’re on 01323 740847. And our ideas extend beyond funeral plans! But here is the Nationwide Press Release:
Nationwide urges smaller organisations to capitalise on their cash as research shows fall in giving
Small charities are being urged to save wisely, with research from Nationwide Business Savings revealing that more than a quarter of people (26%) admit they have reduced donations to charity since the recession.
While overall giving to major causes, such as Children in Need and Comic Relief, has continued to grow, almost one in four (39%) of those surveyed opted to support the larger charitable names, compared with a nearly a quarter (24%) preferring to donate to smaller, more local charities. Of those choosing to give to the big charities, the Nationwide poll revealed that one in four (24%) of people are reluctant to give to smaller charities because they are perceived to be less effective. Conversely, more than half (54%) of people would rather donate to a larger cause, as they are seen to be able to make a more significant collective difference through people power.
According to the Nationwide research, there are also significant regional differences in attitudes towards giving. Londoners appear to have felt the pinch more, with more than a third (34%) saying they had reined in donations since 2007, compared with just one in five (19%) of those in the North East.
Charitable organisations finding themselves frozen out by larger names could make their money go further by investing into a business savings account that pays interest, rather than leave it to gather dust in zero or low interest paying current accounts or savings accounts. Nationwide Business Savings offers a range of accounts to suit the different needs of businesses, including charities, and pays rates of up to ten times higher than those on offer from its high street competitors (see below table for comparison).
Simon Reed, Nationwide’s Head of Business Savings, said: “Charities naturally rely on the good will of people in order to raise the money needed to help good causes. However, if household budgets come under pressure, people often look to cut expenditure, meaning donations to charities could be amongst the first things to go.
“As with any business, it’s important to make the most of the money that you do have. Often, an organisation will choose to open a business savings account with the same provider they bank with. But in doing so they could be losing out on valuable interest.
“At Nationwide, we offer rates up to ten times higher than the other high street banks, while providing business and charities with the security of keeping their money with a household brand they know and trust.”
The most popular way to support a charity is through gifting items to charity shops, with 56% indicating this was their chosen means of giving, although almost as many (55%) said they opted for ad hoc donations. The Northern Irish are the most generous with donations of items to charity shops, with two thirds (68%) of those surveyed saying they contribute in this way. Northern Ireland is also the most likely to have a Direct Debit set up to donate to charity, with a third (37%) donating in this manner, compared to just 18% of those in Wales. (see regional breakdown below).
Stephen Uden, Nationwide’s Head of Corporate Citizenship, said: “In 2007, Nationwide members voted to donate 1% of pre-tax profits to good causes. As well as supporting major charities such as Macmillan Cancer Support and Shelter, Nationwide supports over 1,000 small local charities each year through its Community Match scheme.”
Further details on Nationwide’s Business Savings accounts can be found at www.nationwidecommercial.co.uk
Comparison of business savings offered on the high street*
|Provider||Instant Access||Notice||Six-Month Fixed||One-Year Fixed|
|HSBC||0.05% – 0.07% (Depending on withdrawals)||0.06%||Negotiated||Negotiated|
|Royal Bank of Scotland||0.05%||0.25%||N/A||N/A|
|Lloyds Bank||0.05% – 0.10%||0.70%||0.80%||1.15%|
|Barclays||0.05% – 0.50%||N/A||N/A||N/A|
|Santander||0.05% – 0.75%||N/A||N/A||N/A|
|Figures based on a balance of £50,000. Correct as at 15.9.15|
|Region||Percentage of people who have decreased donation to charity since the recession (2008)||Percentage who don’t think smaller charities are as effective||Percentage who would rather make a bigger difference collectively||Percentage who donate to charity shops||Percentage who donate by Direct Debit|
|Yorkshire & Humber||23.9%||31.2%||52.0%||54.4%||25.0%|