New research commissioned by niche bank Cambridge & Counties Bank reveals one in four people (24%) intend to donate less to charity this year than in 2016, and only 12% anticipate they will give more. Nearly half (47%) expect to donate around the same amount as last year.
30% of deposit accounts for charities pay 0.1% Gross AER or less on balances of £10,000 or over.
13% offer less than 0.1% Gross AER on balances of this size
Cambridge & Counties Bank deposit accounts pay from 1.10% Gross AER on deposits of £10,000 or more from charities
New research (1) commissioned by niche bank Cambridge & Counties Bank reveals one in four people (24%) intend to donate less to charity this year than in 2016, and only 12% anticipate they will give more. Nearly half (47%) expect to donate around the same amount as last year.
When it comes to why they will donate less, 39% said the main reason was because their disposable income has fallen, and 36% said it was down to their cost of living rising. One in four (24%) said it was a result of other personal circumstances changing meaning they have less money.
Change in donations to charities during 2017 when compared to 2016
Percentage of UK population
Up to £50 less
Between £51 and £100 less
Between £101 and £200 less
Over £200 less
Up to £50 more
Between £51 and £100 more
Between £101 and £200 more
Between £201 and £300 more
Over £300 more
About the same as last year
I don’t donate to charities
As well as a possible fall in donations, research (2) commissioned by Cambridge & Counties Bank also reveals many returns on cash deposit accounts for charities are offering extremely low returns.
Its deposit accounts pay from 1.10% Gross AER on deposits of £10,000 or more, but its findings (2) reveal around 30% of other cash deposit accounts for charities are offering returns of 0.1% Gross AER or less. Around 13% offer less than 0.1% Gross AER. Less than 1% of deposit accounts open to charities are paying 1.00% Gross AER or more.
Rachel Curtis-Bowen, Chief Customer Officer at Cambridge & Counties Bank said:
“The cost of living for many people is rising and our research shows that for many this means they will be donating less to charities this year. Charities rely heavily on donations and if they see a drop here it could adversely affect the services and help they provide to millions of people.
“However, charities can offset the impact of any fall in donations by making sure that the interest rate they receive on their cash deposits is competitive, and if it’s not they should be prepared to switch to a different provider or account.”
(1) 1,050 people were surveyed by the market research company Consumer Intelligence on 21st July 2017.
(2) Those interviewed nationally representative UK adults aged 18*Analysis of Business Moneyfacts data October 2017