Big fall reported in cancellation rate for charity direct debits

Figures from the direct debit processing company Rapidata show that the average annual cancellation rate in 2013 was 3.1 per cent

Rapidata's Charity Direct Debit Tracking Report 2014
Rapidata's Charity Direct Debit Tracking Report 2014

The cancellation rate for charity direct debits plummeted in 2013 to pre-downturn levels, according to the direct debit processing company Rapidata.

Its Charity Direct Debit Tracking Report 2014, published today, shows that cancellation rates last year fell to their lowest average rate since 2006.

The report, which is based on data from more than 500,000 monthly direct debit donation transactions, shows that the average annual cancellation rate in 2013 was 3.1 per cent, compared with 3.56 per cent in 2012. It was 3.1 per cent in 2006.

The high over the past 10 years was in 2008, when it reached 4.33 per cent.

The monthly cancellation rate, which is the proportion of direct debits cancelled in a calendar month as a percentage of total live direct debits, was 4.05 per cent in January 2013 and fell to 2.4 per cent in December 2013.

The monthly peak over the past 10 years was 5.63 per cent in January 2009.

Scott Gray, managing director of Rapidata, said: "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."

He said that continued investment in donor stewardship had driven down cancellations "to create the most positive environment for regular giving ever seen".

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