A substantial downturn in the value of individual donations between 2002 and 2003 has lead to calls for both charities and donors to take advantage of tax-efficient giving methods.

According to the research Inside Research – Charitable Giving in 2003 by CAF and NCVO released this week, in 2002 the estimated total amount given to charities was £7.3b. In 2003 this figure had decreased to £7.1b. However, with only a slight change in the numbers of people giving it has been suggested that it is economic factors rather than a change in public perception that is responsible for the decrease in income.

Stuart Etherington, chief executive of the NCVO, said: “We are concerned that small charities are operating in an increasingly difficult environment. Public trust and confidence in charities is still high and we urge all those members of the public already digging deep, despite an uncertain financial future, to use tax-efficient giving methods to boost their donations further.”

The study indicates that planned giving is on the increase. In 2003 16.8% of donations came from direct debit and standing orders in comparison to 15.3% in 2002. Despite this, street collections and door-to-door collections remain the most popular ways of donating to charity.

Stephen Ainger, Chief Executive of CAF, said: “Planned and tax efficient giving is rising rapidly and CAF continues to believe that it is vital to help the public give even more. Frankly, giving to charity and supporting your community must become a priority - not just an add on.”