The majority of donors, especially millennials, want to donate to specific causes or campaigns within charities and to know when their donations are spent, a survey by Giftcoin has revealed.
Giftcoin questioned over 2,000 consumers and found that overall, 69% of consumers would like to choose specific causes or campaigns to donate to within charities, rising to 75% for those aged 18-34. In addition, 52% of adults, and 70% of millennials, would like to be told when their money had been spent.
In return for a two-way conversation with charities, 25 per cent of consumers and 35 per cent of millennials would share these notifications on social media. Providing donors with more information could also help encourage greater giving, the survey suggests. It found that people believe almost half of their donations are absorbed by overhead costs, with significant portions going on salaries, office rent and advertising.
According to the survey, given the option of more transparency from charities about where donations are spent, the average reported consumer increase in giving was 49 per cent, while one in six would double their donation or more.
Alex Howard, Co-founder of Giftcoin, the blockchain start-up, said:
“It’s no longer the case that consumers are happy to give money into one big shared pot, they now expect to have a say in how their donation is spent.
“Charities need to start a two-way conversation with their supporters. In this connected world, people expect openness and transparency to make the experience of giving more rewarding. In return, charities can expect their supporters to become advocates for the charity and through social media, they can share their experiences with their network.
“At a time when everybody is tightening their belts, charities need to adapt to consumers’ desires and changing habits to succeed.”
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