Research by charity think tank NPC has found that £665m extra could be given to charity by the public, if they better understood how their money is spent.
NPC’s Money for Good UK report shines a light on who gives to charity and why. The research asked donors if they could give more, and how much more they would give if charities did a better job in the areas that are important to them.
The report reveals that the UK public would give £665m more to charity every year if organisations provided more information about the things donors care about, such as how their money is spent and evidence of impact.
The report shows that charities perform relatively well in the areas that donors care about, but that there is room for improvement, which could lead to a significant jump in donations. High-income donors in particular say they want charities to be clearer about what their money is used for and the impact that the charities have.
Dan Corry, Chief Executive of NPC, said: “As the state withdraws from many areas where it once offered support, charities are increasingly being expected to fill in the gaps. Now, more than ever, it is crucial that we understand who is giving money to charity, why they are doing so and how we might encourage them to donate more.
“This report identifies a huge opportunity for charities: by tailoring their conversations with the public, and talking about the difference they make, they could significantly increase the sector’s income.”
The report, based upon interviews and an Ipsos MORI survey of over 3,000 UK adults, also found that:
- Amongst mainstream donors, the average annual donation is £303. Among high-income donors it rises to £1,282 per year.
- Mainstream donors aspire to be more generous, suggesting you should aim to give 6.5% of household income to charity. High-income donors suggest donating 4.7% of household income.
- Mainstream donors in Scotland give more than any other country in Britain—an average £356 per year.
- Mainstream donors in the Midlands give more to charity than any other region of Britain, an average of £375. Mainstream donors in the North East give the least, with an average of only £223, though this may reflect income levels in the region.
- Male mainstream donors give more to charity than female ones, giving on average £349 a year compared to £260 for women, though this may reflect individual income and positions within the household.
- Among mainstream donors the average amount given to charity increases with age; however, amongst high-income donors the 18-34 age group give the most.
- Medical research, children and young people, and hospital and hospices are the three most popular causes to donate to among UK donors. The arts, and sports and recreation are the least popular causes.