Australian Charities Ignoring High Value Donors

Flickr Image: Some rights reserved by smellybee

Australian charities are at risk of losing valuable donors by not thanking them or informing them of what their donations are achieving – and this is heightened during disaster giving appeals, according to Charities Aid Foundation (CAF) Australia.

These are some of the findings from the “Disasters, Donors and Giving” research study published by Charities Aid Foundation (CAF) Australia which shows that 75% of donors feel charities do not communicate well about how their regular donations are used.

CAF Australia provides pre-tax workplace payroll giving across Australia and has recorded substantial increases in giving through this method during times of disaster including the Victorian bushfires and the spate of disasters at the start of 2011.

The survey was conducted following this year’s string of disasters to evaluate why people give during disasters; and/or on a regular basis at other times.

Respondents numbered 1045 employee donors from 59 companies operating a CAF Workplace Payroll Giving program and found that 91% of respondents had given to a disaster appeal in the past two years.

However, 75% of those donors are unhappy with the lack of information charities provide back on how and when those donations are being used.

Average donations for these appeals rose to $150 against the average donation through Workplace Payroll Giving operated by CAF Australia of around $60 a month from each donor.

Don Willesee, Chief Executive of CAF Australia says employees who give through Workplace Payroll Giving are a valuable group of donors who provide vital regular income for many charities but many feel they are being ignored by the charities they give to.

Willesee says charities need to treat and inform these very loyal donors who give in this way as ‘VIP donors’ and ensure they get the feedback and communication that is right for them.

The research found that Australians continue to be willing and supportive donors – particularly in times of disaster – but they want charities to be more transparent by communicating administration costs and time-lines for appeal efforts and demonstrate the impact of donations through success stories and the scale of their efforts.

He says, interestingly, these Workplace Payroll Giving donors are less interested in the immediate tax benefit of giving from their pay than the convenience it offers to give easily.

The report can be downloaded at http://www.cafaustralia.org.au/uploads/files/caf_disasters,_donors_&_giving_research_april_2011.pdf