In conversation with MobiCash: The future of charitable giving in the UK
In our latest podbyte we discuss how charitable giving has been affected by the COVID-19 pandemic. Our Business Development Director Scott Lane and Julia Danilyuk, Senior Marketing Executive, assess the impact the restrictions have had on the country’s charities, how donation habits have changed and what charities can do moving forward to adapt.
Julia Danilyuk (JD) – Senior Marketing Executive
Scott Lane (SL) – Business Development Director
JD: The COVID crisis has challenged every individual and every organisation, and the charity sector is no different, with demand for charitable services remaining high, while their resources are limited. Today I am joined by Scott Lane, Business Development Director here at MobiCash. Scott, in your opinion, how can charities do more with less in this situation?
SL: Cash giving as a whole has fallen sharply due to COVID-19. As we know, charities rely a lot on physical face-to-face events to promote their charitable causes and drive new donations. However, due to the pandemic, the sector has seen a sharp decrease in donations because of restrictions in place on physical events. With over 168,000 charities registered in England and Wales, the pandemic has hit hard, not only because of dropping donations, but people losing their jobs in other sectors. For charities, it has meant that fewer of their supporters have disposable income to give while more individuals have started relying on charities like food banks or unemployment support organisations during tough times. Charities now need to look at new ways to collect donations, or a fresh approach, and adapt accordingly to the digital transformation.
JD: So, have charities started to adapt already?
SL: The larger charitable organisations have done this already, but the smaller charities have been really impacted because they don't have the resources of these larger charities. And of the 168,000 registered charities, 75% are collecting less than £100,000 per annum. That's a lot of smaller charities that have been impacted in the sector.
JD: From what you’ve said, it sounds like there is a growing technological gap between smaller charities with limited resources and those who managed to transform their strategy. Do you think this gap can be closed?
SL: The gap can be closed. There are solutions out there - we'll discuss a bit more around the MobiCash solution that Compass Plus offers to the charity sector later. But the smaller charities now need to find a digital solution that is easy to implement and is also an affordable solution, that will allow them to expand their collection capacity, and attract new donors. These solutions need to be flexible to meet charities’ needs, and easy to integrate into the wider fundraising strategy in order to complement existing activities and boost collections. Most charities don’t have technology like that in place yet, so it is beneficial to work with a trusted technology partner that understands the sector and can offer a solution that is easy to roll out and use.
JD: You mentioned MobiCash. Can you give us a bit more detail about it and how it could work for the charity sector in particular?
SL: MobiCash is a product that can fill the gap. It can offer small charities new ways of capturing donations. It's a payments super app with many value-adds, allowing the charity to accept donations remotely, via emails to their existing base of donors, and also on their website to new donors by using QR codes.
JD: We’ve discussed that many charities are finding it more difficult to raise donations at the moment - how can MobiCash help boost them?
SL: I think there are a number of features, but we'll just touch on a few here. We know that cash giving has fallen due to the pandemic. Charities need to reduce their reliance on cash because habits have changed in the way that people pay, also, in the way they want to donate funds to a charity, so there will be fewer cash donations going forward.
MobiCash can help upgrade any charity’s fundraising strategy and boost donations with a host of useful features. Firstly, with MobiCash, Gift Aid collection capability is always included, which means the charity can claim an extra 25p for every £1 that is donated.
Secondly, our service is primed for QR code payments, making it easy to collect remotely, as well as face-to-face or at events. The flexibility of QR code technology allows charities to turn virtually anything into a mobile donation point by simply placing a QR code on it – posters, flyers, TV screens and so much more.
Another key advantage of MobiCash is convenience and versatility. As everyone has a smartphone in their pocket these days, charities can collect remotely, in person or even over the phone, without having to rely on cash collections as much as before.
In addition, with MobiCash, charities can choose to promote their cause within the app by taking advantage of their customisable in-app space, as well as by utilising in-app adverts to highlight their charitable work and, ultimately, increase reach and attract new donors.
If you are interested to learn more, check out our recent blog ‘How UK charities can better prepare for the post-COVID reality’. If you are interested in onboarding with MobiCash, please contact our team.