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Charitable Giving - UK - June 2019

What you need to know

The rapid rise of digital payments in the UK has been accompanied by a relatively sharp decline in cash-based transactions. For the third sector, where cash has traditionally been a key source of income, this is a major threat. Many charities have already made progress in terms of adopting digital payment options, including experimenting with contactless donations for street collections, but there needs to be much more progress if the sector is to maintain and even grow donation levels in the future.

“As digital payment options have become more popular and widely available in recent years, there has been a subsequent decline in cash transactions. Cash has long been the most popular way of donating to charities, but the declining popularity of physical money means that charities must ensure they adopt and promote digital payment options in order to meet the changing consumer demand.”

– Jack Duckett, Associate Director – Consumer Lifestyles

This report examines the following issues:

  • The tipping balance between cash and digital donations
  • Boosting the UK charity shop market

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Table of contents

  1. Overview

    • What you need to know
    • Executive Summary

        • The market
          • Number of charities rises
            • Figure 1: Number of charities, England and Wales, 2009-17
          • Workers enjoy real wage rise…
            • …and financial confidence continues to rise
              • Adapting to an increasingly cashless society
                • Companies and brands
                  • Brands take a different approach to advertising
                    • Figure 2: Total above-the-line, online display and direct mail advertising expenditure by charities, 2015-18
                  • The consumer
                    • Health and medical giving softens, as environmental causes gain traction
                      • Figure 3: Types of charitable cause donated to in last 6 months, March 2019 vs December 2017
                    • Digital payment options become more popular
                      • Figure 4: How people have donated money to charity in last 6 months, March 2019 vs December 2017
                    • Online donations increase…
                      • Figure 5: Ways in which online donations were made to charities in last 6 months, March 2019 vs December 2017
                    • …but cash remains important
                      • Figure 6: Ways in which cash donations were made to charities in last 6 months, March 2019 vs December 2017
                    • Charitable donations increase…
                      • Figure 7: Mean donation given to charity in last month, by age and gender, March 2019 vs December 2017
                    • …but further growth could be under threat
                      • Figure 8: Reasons for not donating money to charity, March 2019
                    • The pros and cons of “Marie Kondo effect”
                      • Figure 9: Other charitable activities conducted in last 6 months, March 2019 vs December 2017
                    • Consumers most charitable when buying clothing
                      • Figure 10: Charitable consideration taken into account, by retail sector, March 2019
                    • What we think
                    • Issues and Insights

                      • The tipping balance between cash and digital donations
                        • The facts
                          • The implications
                            • Boosting the UK charity shop market
                              • The facts
                                • The implications
                                • The Market – What You Need to Know

                                  • Workers enjoy real wage rise…
                                    • …and financial confidence continues to rise
                                      • Charities see rise in income
                                        • Volunteer levels stabilise
                                          • Adapting to an increasingly cashless society
                                          • Market Size

                                            • Number of charities rises
                                              • Figure 11: Number of charities, England and Wales, 2009-17
                                            • Larger charities grow at faster rate…
                                              • Figure 12: Number of charities in each income bracket, England and Wales, September 2017-September 2018
                                            • …as does their income
                                              • Figure 13: Charities’ annual income, England and Wales, September 2017-September 2018
                                            • Volunteer levels stabilise
                                              • Figure 14: Any formal or informal volunteering (NET), online and paper estimates, England, 2013/14-2017/18
                                          • Market Drivers

                                            • Workers enjoy real wage rise
                                              • Figure 15: Headline CPI inflation (12-month percentage change), vs average weekly earnings (3-month average), January 2013-January 2019
                                            • Financial wellbeing fluctuates
                                              • Figure 16: Financial wellbeing index, December 2013-January 2019
                                            • Adapting to a cashless society
                                              • Cybersecurity concerns
                                              • Companies and Brands – What You Need to Know

                                                • Recorded adspend continues to decline
                                                  • A correlation between advertising levels and donations
                                                    • Spending on TV advertising grows
                                                      • Outdoor advertising goes digital
                                                      • Advertising and Marketing Activity

                                                        • Recorded adspend continues to decline
                                                          • Figure 17: Total above-the-line, online display and direct mail advertising expenditure by charities, 2015-18
                                                        • A correlation between advertising levels and donations
                                                          • Figure 18: Total above-the-line, online display and direct mail advertising expenditure by charities, by charity type, 2015-18
                                                        • Spending on direct mail declines…
                                                          • Figure 19: Total above-the-line, online display and direct mail advertising expenditure by charities, by media type, 2015-18
                                                        • …as TV advertising grows
                                                          • Outdoor advertising goes digital
                                                            • Figure 20: Movember ‘Stop Men Dying Too Young’ campaign, November 2018
                                                            • Figure 21: The Dyslexia Association ‘A Moment of Dyslexia’ campaign, July 2018
                                                          • Top charities account for a third of total adspend
                                                            • Figure 22: Total above-the-line, online display and direct mail advertising expenditure by charities, by leading charities (based on top 10 for 2018), 2015-18
                                                          • Nielsen Ad Intel coverage
                                                          • The Consumer – What You Need to Know

                                                            • Health and medical giving softens…
                                                              • …while giving to environmental causes rises
                                                                • Cash donations begin to slide…
                                                                  • …as digital payment options become more popular
                                                                    • Charitable donations increase
                                                                      • 35% cannot afford to donate financially
                                                                        • The pros and cons of “Marie Kondo effect”
                                                                          • Consumers most influenced by corporate charitable giving when buying clothing
                                                                            • FMCG shoppers prove engaged with charity
                                                                            • Charitable Causes Donated To

                                                                              • Health and medical giving softens…
                                                                                • Figure 23: Types of charitable cause donated to in last 6 months, March 2019 vs December 2017
                                                                              • …while giving to environmental causes rises
                                                                                • Figure 24: Proportion of adults who gave to environmental causes, by age, March 2019 vs December 2017
                                                                            • How People Donate Money

                                                                              • Cash donations begin to slide…
                                                                                • Figure 25: How people have donated money to charity in last 6 months, March 2019 vs December 2017
                                                                              • …digital payment options become more popular…
                                                                                • Figure 26: The Big Issue ‘Pay It Forward’ initiative in collaboration with Monzo, April 2019
                                                                                • Figure 27: Marie Curie’s ‘Garden of Light’ campaign, March 2018
                                                                              • …but cash remains important
                                                                                • Figure 28: Ways in which cash donations were made to charities in last 6 months, March 2019 vs December 2017
                                                                              • Online donations increase
                                                                                • Figure 29: Ways in which online donations were made to charities in last 6 months, March 2018 vs December 2017
                                                                              • The importance of digital marketing
                                                                                • Figure 30: Knorr charity click initiative, April 2018
                                                                            • How Much Money People Donate

                                                                              • Charitable donations increase
                                                                                • Figure 31: Mean donation given to charity in last month, by age and gender, March 2019 vs December 2017
                                                                              • Donations appear to peak amongst 25-34s
                                                                                • Engaging more affluent donors
                                                                                  • Figure 32: Mean donation given to charity in last month, by household income, March 2019
                                                                              • Barriers to Donating to Charity

                                                                                • 35% cannot afford to donate financially
                                                                                  • Figure 33: Reasons for not donating money to charity, March 2019
                                                                                • Trust remains a challenge for the third sector
                                                                                  • Figure 34: Proportion of non-donors who agree “I do not trust charities to put my money to good use”, by age, March 2019
                                                                                • Charities must continue to adapt to cashless society
                                                                                  • Figure 35: Proportion of non-donors who agree “I never have any cash on me”, by age, March 2019
                                                                              • Other Charitable Activities Conducted

                                                                                • The “Marie Kondo effect” boosts charity shop donations…
                                                                                  • Figure 36: Other charitable activities conducted in last 6 months, March 2019 vs December 2017
                                                                                • …but damages purchase rates
                                                                                  • Figure 37: Screengrab of Oxfam Festival Shop boutique on ASOS Marketplace, May 2019
                                                                              • Charitable Buying Considerations

                                                                                • Consumers most charitable when buying clothing…
                                                                                  • Figure 38: Charitable consideration taken into account, by retail sector, March 2019
                                                                                • …underpinning opportunities for fashion retail sector
                                                                                  • Figure 39: Harrods’ Fashion Re-Told pop-up, April 2018
                                                                                • FMCG shoppers prove engaged with charity
                                                                                  • Figure 40: Proportion of total launches, by super-category carrying “ethical – charity” claims, 2016-18
                                                                                • Boosting engagement with charities in the homeware sector
                                                                                • Appendix – Data Sources, Abbreviations and Supporting Information

                                                                                    • Abbreviations
                                                                                      • Consumer research methodology

                                                                                      Charitable Giving - UK - June 2019

                                                                                      £2,195.00 (Excl.Tax)