Text donations likely to rise by £10m this year, says Phone-paid Services Authority

After a dip in the 2016/17 financial year, says the regulator, the value will increase to about £124m in 2017/18

The value of charitable donations by text message will grow by almost £10m in 2017/18, the regulator for phone-paid services and goods has predicted.

The Phone-paid Services Authority said last month that donations had fallen by £7m to £115m in the year to the end of March 2017, compared with the previous year.

But in its annual market review, published today, the regulator says it expects donations to recover from the dip and grow to £124.4m in the current financial year.

The regulator says the increase is likely to happen because of predicted increases in regular monthly donations by text to charities in 2017/18.

The £3 one-off donation point is also likely to increase to £5, the regulator says, which will also help to increase income for charities from text donations.

A £20 donation point is also likely to be introduced after proving popular in 2016/17 among donors to charity telethons.

The regulator says it expects non-broadcast charities to adopt the £20 donation point during the next financial year.

The fall in the text donation figures for 2016/17 was probably due to reductions in marketing spend by charities and new opt-in fundraising models, the regulator says.

Jo Prowse, chief executive of the Phone-paid Services Authority, said: "Consumers love donating by text. It’s easy, convenient and trusted. Our annual market review shows that consumer satisfaction with charity donations is the highest of all phone-paid services.

"The introduction of the £20 price point reflects a growing confidence in this form of fundraising, and we will continue to support this important sector."

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