Contactless fundraising: the solution to charity challenges

The world of fundraising is always changing. Charities have had to innovate to adapt to rapidly changing circumstances, most recently with the cost-of-living crisis which has impacted the public’s ability to donate amid a worsening economic climate.  

Indeed, four in five charities said the economic situation, and fewer donations as a result, was their biggest fundraising challenge in 2023, according to the most recent Status of UK Fundraising report. Three in ten charities also cited having the right tools and systems in place for fundraising as a concern.  

This is, perhaps, unsurprising given has the seismic shift towards digital donations that has occurred since 2019. In 2023, banking giant Barclays found that more than nine in ten face-to-face transactions using a debit or credit card were contactless, with consumers spending almost 50% more than they did in 2022 using contactless technology.  

For charities, the challenge is having the technology in place to address these new spending habits and integrate them into their fundraising. Contactless payment terminals, for example, which can often be found in museums or places of worship, offer a convenient solution to both charities and their supporters, who want to donate quickly and easily in the same way they purchase their goods.  

In this article, we explore how contactless technology can address the needs of donors in an increasingly cashless society, while boosting charity income in the most efficient way.

Contactless means convenience 

Contactless payments are convenient for both donors and charities themselves. In a world where we rarely carry cash, donors can still donate to charity in a way that suits them, while charities benefit from more individual donations and more data to improve how they fundraise.  

The data from digital donations can show charities, among other things, the best places to put donation terminals for convenience and which fundraising initiatives generate the most donations, even allowing supporters to choose where they want their money to go to.  

Contactless donation terminals from Dona, for example, allow charities to show donors how much money is needed for each service, whether it’s delivering hot meals or providing a bed to those in need. This information builds trust with donors by demonstrating the impact of their donation and providing clarity around where their funds will be directed.  

Lantern Arts Centre began using Dona terminals in 2020, after experiencing a huge decline in cash donations in 2020. Like many charities, in order to address this challenge, the Arts Centre went digital with donation terminals and a donation webpage from Dona, increasing their average donation to £49. Supporters can choose what they want the donation to be for, allowing them the certainty that their money will have a much-needed impact on the cause they support.  

But in addition to this, the fundraising team at Lantern Arts Centre have been able to monitor their donations remotely, understanding how each of their community initiatives have been performing over time. Supporters can say whether they’d like to add Gift Aid as they donate, which saves charities chasing, while increasing the funds they are able to collect at no extra cost to the donor. It’s a win-win for everyone.

Putting donors first 

While contactless donation terminals allow charities to set suggested donation amounts that correspond to the services they deliver, donors can also control how much they want to give.  

Considering that individual donations have decreased over the last twelve months, this is a great way of encouraging new donors to give without pressure, which is increasingly important in a cost-of-living crisis. While large donations are helping charities meet their fundraising targets, the average donation via contactless terminal is £13, according to  Dona, meaning that increasing the number of smaller donations is an opportunity not to be missed.  

Enabling contactless donations allows charity supporters to donate on an ad-hoc basis, on their schedule and terms. With giving on the street proving the most popular method of donating to charity in 2023, charities can use contactless to enhance their usual fundraising activity, as well as creating new income streams at the same time.