Charities: Are you missing out on donations due to the timing of your Direct Debit collections?

If you are using Direct Debits to collect donations for your charity, delaying collection can lead to a serious loss of revenue. In this article, we'll explore how you can optimise your collection schedule and use the Automated Direct Debit Instruction Service (AUDDIS) to maximise your revenue. AUDDIS sends Direct Debit instructions to banks electronically.

The problem with delayed Direct Debit collections

Delaying collections of Direct Debits can quickly add up to lost revenue and, unfortunately, many charities experience unnecessary delays due to their processes. Most supporters are eager to start contributing to your cause as soon as possible, but if your organisation isn't optimising its collection schedule, you could be missing out on significant amounts of revenue.

Why it’s important to optimise your Direct Debit collection

Let's look at two different scenarios to illustrate the potential impact on your revenue. In both cases, a supporter has agreed to contribute £10 per month by Direct Debit until the same date the following year.

Charity A is not registered for AUDDIS and only offers one collection date on the 1st of the month. This means that, as the charity is not on AUDDIS, it has to wait a minimum of 10 working days to collect a new donation by Direct Debit.

This means that if a new supporter signs up on the 14th of January, Charity A would likely be unable to collect the first donation until the 1st of March.

In contrast, Charity B is using Paperless Direct Debit and AUDDIS and can offer its supporters any collection date within the month.

If a supporter signs up on the 14th of January, Charity B can take the first collection on the 21st of January, followed by subsequent collections on the 1st of each month. By the 2nd of March, Charity B has collected £30, whereas Charity A has only collected £10.

The impact of timely Direct Debit collection on revenue

Although the difference in revenue won't always be as significant as the scenario above, improving your collection timings or migrating to AUDDIS can have a significant impact on the value of an individual's gift. If a supporter has agreed to contribute until the following year, Charity A will only have collected £100 compared to Charity B, which would have collected £120.

How to improve your Direct Debit collection schedule

If you want to eliminate unnecessary delays and optimise your collection schedule, we can help. By implementing AUDDIS or Paperless Direct Debit, you can streamline your processes and maximise your revenue. Get in touch with us today to learn more about how we can help you improve your knowledge and processes.

If you have any questions or need further support, please do not hesitate to contact us. We are here to help you navigate the technicalities of Direct Debit management.