Huge fall in donations to charities – many face closure
New research from DSA Connect, an IT asset disposal company which specialises in the permanent deletion and destruction of electronic data, reveals that
28% of people have cut their donations to charities since the start of the coronavirus crisis, compared to just 5% that have increased them.
The company estimates that the drop in donations from those giving less equates to around £140 million a month, and this coupled with the fact that more people are using the services of charities during the crisis will mean a growing number will be forced to close. DSA Connect’s research reveals 8% of people are receiving more support from charities (or are using them for the first time) since the crisis started, compared to just 3% who are using them less.
DSA Connect, which is being contacted by charities closing or planning to close that want help with erasing sensitive information from their IT hardware, and advice on how to dispose of their technology, says more than half of people (53%) that have reduced their donations to charities did so because they are more conscious of saving and protecting their income during the Coronavirus crisis. Its research found a third (34%) cited either a pay cut, being furloughed, or job loss as their reason for cutting back. Almost a quarter (23%) said they reduced their donations because their living expenses have increased, whilst 21% say it is because they are now providing greater financial support to their family and loved ones through the crisis.
The research also highlights that the situation isn’t likely to improve any time soon. Some 42% of those donating less don’t know when they will start giving the same amount again, with one in six (17%) admitting they have no plans to re-adjust their donations to their previous total.
People donate around £10 billion a year to charities(2), but given the financial state of the UK charity sector a survey published earlier this year found that around 10% of UK charities think it is ‘likely’ they will cease to operate before the end of November.(3)
Harry Benham, Chairman of DSA Connect said: “Like many organisations, charities are finding themselves under immense pressure because of the Covid-19 crisis. Our findings show that more people are leaning on charities for support, yet donations have taken a significant hit. Sadly, many charities are on the brink of closing, and we have seen a growing number contacting us asking for help in how they can erase sensitive data properly from their IT hardware, and how best to dispose of their technology or get the best price from selling it.”
“It is paramount that charities correctly dispose of all their unwanted data and obsolete technology. If they don’t they could find themselves in breach of data security and possibly face fines for this.”