IN RECENT years, we’ve all got used to tapping to pay for goods, services and making donations.
Now, a specialist insurer is warning charity and community organisations to be aware of risks of cashless giving.
New research from the Charities Aid Foundation suggests the average donation is £20, something that has remained stable even through the covid pandemic. But cash giving had declined: in 2019, more than half of donations were made in notes and coins, but just four in 10 did in 2022, the last year for which figures are available.
And the research shows that last year, 64% of Berkshire residents mad a charitable donation.
Now, insurer Ansvar, which specialises in helping charity, not-for-profit, and faith sectors, wants people to be aware of the risks, and ensure they have robust cybersecurity measures in place.
Martyn Fletcher, deputy managing director at Ansvar, said: “The shift towards cashless giving presents both opportunities and challenges for charities and donors alike. While it provides greater convenience and accessibility for donors, it does mean new challenges for charities in protecting against emerging risks.
“As cashless giving becomes increasingly prevalent, it is vital for charities to prioritise cybersecurity, implementing stringent protocols to safeguard data and donations.”
It also encourages donors to be vigilant when making donations, saying they should verify the donation platform they are ensuring and ensure the financial details are kept confidential.
While acknowledging the inherent risks, Ansvar says there are benefits to cashless giving, including the ability to make and receive instant donations and the expansion of fundraising channels. Options include handheld card readers to QR codes and text-to-donate services, cashless giving offers convenience and flexibility for both charities and donors.
Mr Fletcher added:
“As the trend towards cashless giving continues to grow, it’s vital for charities and donors to work together to mitigate risks and maximise the impact of charitable contributions.”
Charities and donors are encouraged to follow Ansvar’s guidance to ensure the safe and effective management of cashless donations.
For more information, log on to: www.ansvar.co.uk
