Rapidata Services has announced a dramatic fall in charity direct debit cancellations to the lowest annual average rate since 2006, before the global recession took hold.

Rapidata’s Charity Direct Debit Tracking Report 2014, released today, compiles regular giving data from more than 500,000 monthly Direct Debit donation transactions.

This news is hailed as the most positive indicator yet that donor retention is firmly on the rise post-recession.

Monitoring Direct Debit cancellations over the past 10 years, Rapidata’s Tracking Report maps cancellations throughout 2013, plotting the typical cancellation cycle, making comparisons with previous years and identifying key events that can impact cancellation behaviour.

During 2013, cancellations fell steadily from 4.05% in January to close at 2.40% in December, bucking the typical cancellation cycle peaks.

The average Direct Debit cancellation rate (3.10%) was not only markedly lower than that of 2012 (3.56%), but the lowest level seen since 2006.

The Report charts the impact of the recession on cancellation rates, also identifying key events that impact donor behaviour, from the London Olympics and Paralympics to Prince William and Princess Kate’s wedding.

While cancellations ‘skyrocketed’ during the recession to a peak of 5.63% in January 2009, the euphoria around major events such as the Royal Wedding led to markedly fewer cancellations during those months.

“Looking at cancellations from the last few years, we can see the catastrophic impact of the recession on charities’ regular giving income streams,” said Scott Gray, managing director at Rapidata Services.

“With continued investment in donor stewardship, charities fought through the recession, driving down cancellations to create the most positive environment for regular giving ever seen before.

“Cancellations plummeted in 2013 and this is the clearest sign yet that charities’ investment in stewardship, along with the backdrop of a more robust economic landscape, is succeeding in encouraging supporters to keep on giving.”

Mark Astarita,
 director of fundraising at the British Red Cross and chair of the Institute of Fundraising, added: “History will show that UK fundraising weathered the storm of this last recession rather well and that this will have been done best by those who concentrated on regular giving.

“In January 2009, with the full roar of the recession ringing in our ears, 5.63% of Direct Debits were cancelled.

"By December 2013, cancellation rates were down to a remarkable 2.40%. The difference may only be a few percentage points but for charities as a whole those few points mean millions of pounds.”

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