The rise of cashless donations
Times are certainly changing. For years, cash has been the public’s favourite way to give. Sure, technology is a growing part of the landscape – but really only a part. In 2019, CAF’s research showed 1 in 5 people choosing to donate by website or app (with 14% using social media to do so) and 1 in 10 debit card transactions made with contactless technology. The fractions might seem small, but the very fact that CAF felt it necessary to monitor these distinctions, shows just how much the landscape was starting to shift. In fact, a recent report published by WPNC shows an increasing number of online one-off (up 26%) and regular giving donations (up 12%) – with digital wallets and new giving options (e.g. PayPal and Apple Pay) an important part of this move (UK Fundraising have a great summary).
Then the landscape shifted. With a magnitude no-one foresaw, COVID-19 has seen online and contactless payments surge. In April, 90% of the UK’s face-to-face transactions were made using contactless technology, with the lockdown also seeing a third of shoppers taking their retail therapy online more often. With such dramatic changes in the retail world, and the availability of tools like Facebook Donate, Instagram Stickers, online giving and crowdfunding sites, charities can expect (and indeed are) seeing a similar shift in behaviour – where people still have the capacity to give, of course.
Add to this growing fears around the public health risk of handling cash, and these trends look set to stay. As the team at UK Fundraising highlight, ‘charities will need to adapt the ways in which they collect donations, moving away from volunteer-manned cash collections and embracing a better use of technology’.
From cashless to contactless
We’ve had an eye on contactless donations for a while. Quick, convenient and most importantly, cashless, pre-COVID trends already saw some of the bigger charities taking the plunge. We love that Cancer Research UK has been using contactless technology as part of their World Cancer Day campaign since 2015. Other charities have also been keen to experiment, with 2019 seeing Christian Aid and Red Cross week both going contactless. There are lots of other creative examples (we give some more later on) but these are the exception, not the rule. The fact is, when it comes to contactless, the third sector has been a little slow on the uptake. GoodBox are one of the first to publish data on the subject, with their whitepaper showing 56% of charities put off by high up-front costs. This aligns with CAF’s own research, which shows 1 in 10 charities unable to take advantage of new technology during the pandemic. Why? Because they can’t afford it.
As high as the financial barriers might seem, it’s hard to argue with the ROIs. GoodBox’s data shows purpose-built devices delivering a return of 1,384% - with purchased and rented units coming in at 340% and 212%! Case studies put a face to the numbers, and once again the results are pleasing to see. A year after Tap London went live, their contactless donation points turned 50,000 taps into £145,000 for the homeless. Muscular Dystrophy UK saw a ‘mass tap’ raise £7,000 in five minutes, with Christian Aid week collecting an impressive £15,000 through church-based points.
That was before COVID hit.
As we become an increasingly cashless society, it is safe to say that contactless donations offer an exciting way forward.
The challenge of anonymity
Of course, as with cash collections, contactless donations come with one big problem. They’re anonymous. The pounds might add up, but follow-up is impossible if you can’t trace a gift back to its owner. It’s an age-old issue, and one that is notoriously hard to remedy. But we think contactless donations offer a new opportunity - with technology giving fundraisers the chance to break free from the status quo.
Making more of contactless
We all know that fundraising – good fundraising – is about inspiring donors to give. The beauty of contactless donations is that you can use this new giving technology to create a uniquely powerful ‘ask’. Here are some of our favourites:
- The National Trust, Scotland: built contactless points into replicas of famous artifacts as part of their ‘Preserve the past and protect the future’
- The Blue Cross: Added contactless points to the jackets of their canine friends, inviting donors to give whilst making friends with their furry fundraisers.
- Bristol Children’s Hospital Charity: Takes supporters on a Grand Appeal Gromit Trail (starring – you guessed it, Wallace & Gromit) with 17 donation points along the way.
Then there’s the tap itself. Why not use it to create ‘moments that matter’? Whether it’s the Stag of Piccadilly that lights up every time someone makes a donation, or the stories told by the Stone Age statue at Hengistbury Head Nature Reserve - taps can be set to trigger almost any kind of reaction. Make yours an emotional one. You only have a few seconds, but it’s enough to make a difference (thanks for the examples, Goodbox!).
Once you’ve someone’s attention, there is no reason why an individual donation can’t be followed by a simple prompt to collect a few basic details. Afterall, a name, email address and consent box are all you need to say THANK YOU and start building that all-important relationship. You will be pleased to hear that some contactless points can be programmed to deliver this prompt. Don’t be afraid to use people too. Remember, just because the payment is quick and anonymous doesn’t mean the interaction has to be (always within the rules of social distancing and street fundraising, of course).
If you can use this opportunity to connect with your donor - to elicit an emotional response - it might just be enough to inspire them to share that little bit more.