Report predicts giving with financial products

LUCY MAGGS

Linking charitable giving to financial products would provide charities with a valuable opportunity to attract and develop long-term donors, according to a report from the Giving Campaign.

Planned-giving products, financial products enabling donors to give to charity tax effectively, are already successful in the US.

David Roe, associate director at the Giving Campaign, said: "The report suggests there could be a real demand for attractive planned-giving products."

The research showed that there may be two distinct target audiences for planned-giving vehicles. Products linking giving to life or health insurance would be likely to appeal to the older and wealthier segments of society, many of whom already support charities.

An ISA-style pooled savings product with a charity element would appeal to a younger, sophisticated market.

The research also established that donors would be happy for the product to benefit either an individual charity or a group of related organisations.

But considering the long-term nature of the commitment, the brand of the charity or charities would be of paramount importance in order to reassure donors that their money would be well used.

Products should be simple and easily administered, offer some immediate benefit to the charity or charities and offer feedback to donors directly from organisations in respect of the impact their gift was making.

The report established that for planned-giving products to be introduced in the UK, it is vital to develop understanding between the financial services and voluntary sector.

There is also a need to assess any compliance and regulatory issues that may affect the introduction of products.

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