Will the “small change initiative” catch on?

September 15, 2016, 9:41 AM GMT+0

At present, each year around three quarters (74%) of British adults donate to charity in some form. This figure increases among the over-65s (80%) and is at its lowest among the under-35s (69%).

However, one area where young people are more likely to give is using technology to donate. A third (34%) of 18-34 year olds who give have made an ad hoc donation online compared to just one in six (17%) of over-65s.

Apps are on the rise for online transactions and under-35s are leading the way. While growing numbers of the population as a whole are buying clothes, booking holidays and shopping for groceries through apps online, it is 18-34 year olds that are at the vanguard.

These levels of usage strongly suggest that charities can benefit from a more concerted move towards harnessing the everyday tools of the modern world to drive donations and engagement. This is particularly true for reaching young people, who are the most likely to be digitally savvy but the least likely to donate money to charity.

A new way of giving

Recent research YouGov undertook with the Charities Aid Foundation looked at various methods for digital giving. One method we looked at was the “small change initiative” which brings impulsive, ad hoc donations online and is designed to reflect changes in the way we shop and pay for goods.

The initiative is the digital version of the collection tin by the tills – it encourages shoppers to “round up” their purchases so that if you buy something for £5.95 you would pay £6 with the additional 5p going to charity.

Near to half (48%) of adults are already aware of the small change initiative, growing slightly among 18- 34s (55%). One in five (21%) British adults have donated via the initiative, a figure that rises among the under-35s in line with their increased level of awareness (29%).

As reflected in online donation trends, much of the potential for the growth of the initiative lies with younger people.

Almost half (48%) of adults say they are likely to donate the small change from an online purchase to charity in the future if the option was available. This figure rises to six in ten (60%) among 18-34 year olds.

And not only is the initiative gaining traction, it also seems to benefit retailers that participate. Around a fifth (18%) of people say they would be more likely to use an online retailer that took part in the initiative, with this figure increasing to over a quarter (27%) of 18-34 year olds.

Furthermore, a third (32%) say it would improve their impression of the retailer. Here there was an even greater boost among the under-35s, with half (50%) having a more positive view of the place they were buying from if it allowed them to donate in this way.

The same pattern is true for a charity benefitting from the initiative, with a boost in impression, particularly among younger people. However, it has to be said that it is less marked. One in seven (16%) say the initiative would improve their opinion of the charity (rising to 22% among 18-34s).

The need for digital equivalents to “real-world” transactions

The twin forces of mobile technology and online transactions have transformed most sectors over the past decade. By approaching 18-34 year-olds through platforms that they are already comfortable with, asking them to donate through their preferred channels and using technology to make the experience of giving as personalised as possible, charities could lay the foundations for a lifetime of giving from today’s under-35s.

A big push by charities in this area would also help to boost charitable giving more generally – while younger people are early adopters of technology, absorption by older people takes it mainstream.

This shifting focus to online across many other aspects of life indicates that charities need to introduce digital equivalents of current successful fundraising methods. The data suggests that, with a push, the “small change initiative”, could be just one of these successes.

Image PA

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