Charity financial products have the edge for consumers, says report
Howard Lake | 6 October 2003 | News
Thirty per cent of people would choose to invest in a charity financial product, over a regular financial product, says a report from The Giving Campaign.
The survey, conducted by NOP research, reports a high level of demand amongst consumers for charity financial products – financial products that allow the individual to donate a to charity, often offering
generous tax relief (e.g. Charity ISA).
The research indicates that approximately 30% of people would choose to invest in a charity financial product over a regular financial product where all the return goes back to the investor.
Advertisement
Younger people were particularly attracted to this kind of product. According to the research:
- 40% of young people (25-34) would consider investing in a charity financial product
- 40% of wealthy people would consider investing in a charity financial
product - 37% of young people (25-34) would choose to invest in a charity financial
product, over a regular financial product - 31% of wealthy people would choose to invest in a charity financial product, over a regular financial product
- 29% of people would choose to invest in a charity financial product, over a regular financial product
Phillip Mind, Acting Director of The Giving Campaign, says:
“The development of charity financial products presents charities with a great opportunity to tap into the large-scale distribution channels of the financial sector, attracting new donors at low cost. When you consider that the financial services industry of investment and life products alone has monetary flows of more than £85 billion per year – if even a small percentage of these flows were channelled to the voluntary sector, just imagine what a big impact this could have on charities income levels. In the US, as much as 40% of all income to charities comes through such products and our research shows that consumer demand in the UK is high.”
The Giving Campaign has just produced a new report on this area, ‘Charity Financial Products – A New Approach to Giving’. The report summarises the work undertaken by a group of key individuals from the financial and voluntary sector, examining the charity financial product marketplace in the UK.
They highlighted the following benefits for charities:
- Substantial volume of new income at low cost
- Encourages a more planned approach to charitable giving, allowing charities greater scope in long term planning
- Access to new donors
- Better understanding of donor’s financial circumstances
- Greater prominence of charity in consumer thinking about financial affairs
The Giving Campaign is working to encourage further development of charity financial products in the UK, aiming to create a culture where it is normal for individuals to consider charity within their overall financial planning.
- The Giving Campaign to offer payroll giving toolkit (24 September 2002)
About Howard Lake
Howard Lake is consultant editor of UK Fundraising. He founded the site in 1994 and successfully sold it in 2022. As director of Giving X Ltd he is exploring growing giving on a massive scale.
He is the founder of Fundraising Camp and co-founder of GoodJobs.