# Charities should stop relying on the pennies and grasp the opportunities of digital to look after the pounds

- Link: https://fundraising.co.uk/2018/04/11/charities-stop-relying-pennies-grasp-opportunities-digital-look-pounds/
- Published: 2018-04-11T11:02:00+01:00
- Author: Howard Lake

**In his spring statement, Chancellor Phillip Hammond announced that [1p and 2p coins will be scrapped](https://fundraising.co.uk/2018/03/15/penny-wont-dropped-copper-coins-remain-circulation/).
The announcement came as a result of a paper on cash and digital payments that noted
many consumers no longer use the coins.**

When you think about it, it’s no surprise that people are moving away from cash 
and moving into an era of digital payments. With contactless payments becoming more
and more popular, research shows that two-thirds of people are now making more payments
digitally than they did five years ago.

Even so, the decision to scrap 1p and 2p coins caused a huge amount of backlash 
from the charity sector, with some organisations claiming that scrapping the coins
would harm smaller charities that rely heavily on bucket collections for funding.
The charity sector can sleep easy, though, as the proposal was rejected, but with
clear evidence that digital payments are only likely to grow, charities can’t afford
to ignore this reality forever.

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A recent [digital skills report](http://report.skillsplatform.org/charitydigitalreportdetail-2018/)
found that when it comes to digital strategy, 22% of charities have one but they
haven’t actually embarked on a digital transformation. Now is the time to tackle
this issue. Charities should see the rise of electronic payments as an opportunity
to launch their digital transformation. Whether it’s moving online, going paperless,
developing more savvy apps or even, in this case, replacing cash payments with a
digital payments system, charities can seize this moment and transform their operations.

## Not a threat but an opportunity

Digital transformation may seem daunting for some organisations – some have described
it as change management on steroids – but it really doesn’t have to be. Yes, there
is a lot to consider, including the resources required, legacy IT systems, densely
layered organisational structures, and internal cultures that are resistant to change.
However, the good news is that these are all things an organisation can overcome–
but where to start?

There are many ways to approach digital transformation. Charities can take a ‘big
bang’ approach, where an external organisation is parachuted in to embed its way
of working with a team. This option can sometimes work well, particularly if the
organisation is in a rapid growth phase and is hiring new team members.

However, an iterative, sustainable growth model is more likely to be better for 
most organisations, and for well-established charities in particular. Those who 
view the transformation as a continuous journey tend to reap the greatest rewards.

One way of thinking about your transformation is as a ‘dual’ transformation. This
is where you focus on creating efficiency in your existing operations and maximising
the revenue you gain from them, whilst also investing in product and service development
for the future.

Another important factor to consider is how to make the transformation measurable.
Like with any change, it is important to benchmark the starting point, so that any
improvements can be measured accurately. The Third Sector Digital Maturity Matrix
is just one of many tools that have been developed to help measure this kind of 
change.

Of course, to deliver maximum results, digital needs to be entrenched in the organisation
and everyone needs to buy into the journey. This will require learning from all 
levels of a workforce to make sure that everyone is at least at a basic digital 
level. It is also important to consider the pace of the transformation; going too
quickly can risk alienating people from the process, but going too slowly will cause
people to lose interest.

A great example of a charity embracing digital technology is Four Acre Trust. The
charity recently introduced an [interactive screen in a Cardiff shopping centre window](https://fundraising.co.uk/2018/03/12/contactless-giving-campaign-opens-help-homeless-people-cardiff/)
that allows donations to be made 24 hours a day via a contactless point. After receiving
feedback from local businesses that fewer shoppers are carrying cash these days 
it made sense for the trust to use contactless technology to help raise money. Every
tap is a fixed fee of £2 and the money goes to towards small grants for those

experiencing homelessness. With this approach, the charity is using the latest consumer
technology to make it as easy as possible for its supporters to donate, whilst also
distinguishing itself from organisations that have failed to innovate.

So, at a time when the disappearance of 1 and 2ps is looming, charities should jump
at the chance to begin their digital transformation. The concept of moving to digital
shouldn’t be seen as a frightening prospect, but as a step in the right direction.
Without a doubt, digital transformation is a continuing journey that will take some
time, but the benefits of starting now are undeniable.

 

_**Jim Bowes**, CEO and co-founder of Manifesto, the award-winning agency of creatives
and technologists who collaborate with exceptional organisations to change things
for the better. _

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