My post last week on Britain’s plans to go "cheque-less" by 2018 generated a lot of comment (some publicly posted, some private emails), so I thought I’d summarize some of the key points made.

First of all, it’s true. The Payments Council, a banking industry group in the UK, has announced its intention to phase out cheques by 2018. Here’s a relevant link. Or see the detailed info in John Whitehead’s comment.

Beyond that, there were two themes to the comments. Fundraisers with an international perspective noted that cheque-writers were already in the minority …

Richard Pordes described the wide use of credit cards and GIROs in Asia and South America. Laurie Pringle, who says she has written maybe three cheques in the last five years, noted that Sweden and Finland are already cheque-free. Melvyn Gattinoni also described his experience in Latin America, where credit card giving predominates, and with it, more widespread monthly giving.

John Whitehead offered this UK experience:

"What we do have in the UK are direct debit transactions where a donor can authorize a charity to withdraw an agreed amount from their bank account at an agree frequency.  This gives a much more reliable income stream.  Once a direct debit has been set-up donors can show considerable loyalty.  At WaterAid only around 10% are cancelled each year, and the number regular donors is well into six figure, giving an average of over £65 per year each.

At WaterAid public donations by regular payments accounts for around 85% of our public individual donations.  Also, a rising % of our one off donations are via online credit card payments."

With respect to the US, Chip Grizzard predicts that donors will just go with the flow. He notes that ten years ago, 95% of catalog orders were placed via the mail order form; now, 95% of orders are placed online or by phone.

Jessica Harrington, who works a lot with zoos, cites her experience where donors are offered response options including mail, phone, on-site and online, with 32% of gifts made online.

And Kate Mathews sums up the issue nicely:

"The future is bright for fundraisers. Order forms for some groups now include 3 or 4 ways of giving a donation — check, debit or credit card, direction to a url if one wants to donate on-line, and sometimes an 800 number to call. If we add to that mix directions on how to text a donation — just another method of giving.

For as long as it is cost-effective, and productive of new members or donations, to mail charitable direct mail. “packages” will continue to exist and be used, with components tailored to existing banking processes and ways of giving that give consumers choice and a sense of control over their money and charitable choices."

A number of comments note the association between electronic giving and monthly giving … that’s the silver lining to the transition to electronic payments. And I’d note that most fundraisers have probably seen that, in response to direct mail appeals, average single gifts by credit card exceed those by cheque (in response to the same appeal).

Bottomline, whatever the banks might say in the future, consumers want choice now … give it to them if you want to optimize your fundraising response.

Tom

P.S. I hope all you non-US readers note that I’ve bowed to your quaint spelling of "check"!