Can tech help reshape the public’s negative view of the charity sector?

Consumers believe only around half of their donation (55%) actually goes to a charity’s stated cause, with most believing that salaries and office rent absorb the remainder.

Giftcoin, today revealed these findings, which confirmed that by opening up, charities could increase donations and develop a closer relationship with their donors.

>See also: Tech transforming the charity sector 

The UK is a nation of charity givers, with 81% of consumers giving to charity in the previous twelve months, with the average donation amounting to £67. Across age groups, the average amount given annually ranged from £26 given by 18-24 year olds up to £105 given by those aged 55+.

The study also revealed that if charities were more transparent, they could significantly increase their inbound donations. Given the option of more transparency from charities about where donations are spent, the average reported consumer increase in giving was 49%, while one in six would double their donation or more.

>See also: Scandal: 11 UK charities breach data laws

Alex Howard, co-founder of Giftcoin said: “As the findings show, consumers believe that only half their donation actually goes to the cause they are giving towards. Salaries and office costs are absorbing too much. It is a disappointing situation that the charity sector must now address.”

“It’s time that charities open up and become more transparent. Not only is it the right thing to do, the numbers also show that people will dig that bit deeper when they are confident the cause is maximising the use of every penny donated. At a time when everybody is tightening their belts, charities need to adapt to consumers’ desires to succeed.”

>See also: UK charities facing digital crisis in an unstable era 

The legacy of charity scandals such as Kids Company still lingers in the minds of the UK public as trust in charities remains at a low. The study revealed that the UK is a nation of givers but we would give more if charities where more open about their spending.

Blockchain technology is having a transformative impact on a wide range of sectors and charities are increasingly looking at the latest technology as a way of increasing transparency.

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Nick Ismail

Nick Ismail is a former editor for Information Age (from 2018 to 2022) before moving on to become Global Head of Brand Journalism at HCLTech. He has a particular interest in smart technologies, AI and...

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