Bacs aims to boost donations with the launch of new awards.
Bacs has launched the 2005 Direct Debit Charity Awards, designed to recognise the efforts of charitable organisations in increasing regular donations by encouraging Direct Debit payments amongst donors. Regular giving is the life-blood of UK charities and, by persuading members of the public to donate on a regular basis, charities can benefit from an increased and more stable income. In addition, supporters who donate regularly are far more likely to sign up for gift aid, a government- sponsored tax initiative that allows charities to reclaim an extra 28 pence for every pound pledged.
Direct Debit has proven to be a valuable tool for charitable organisations, with small monthly payments adding up to make a substantial annual donation. Direct Debit costs charities less to process than cheques, standing orders and cash donations, giving the charities a planned and regular income. In addition, Direct Debit patrons are less likely to cancel their donations and benefit from being completely in control of their pledges. Using Direct Debit to manage charitable donations makes sense for both patron and charity alike.
In 2005, the inaugural awards will have three categories: the Achievement Award for the charity with the most improved (year on year) Direct Debit take up; the innovation award, for the most creative use of original ideas and processes to promote Direct Debit. The final category is the best practice award, presented to the charity achieving the highest level of organisational improvements and customer satisfaction by offering Direct Debit as an alternative payment method.
Michael Chambers, Managing Director, Bacs, comments, "The impact of gift aid cannot be understated. Earlier this year we highlighted astonishing research uncovering that charities forego income approaching £400 million a year because of donations that fail to take advantage of the tax breaks available to them. It makes sense for Direct Debit to work with charitable organisations to try and maximise the flow of funds for worthy causes."
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