New index shows that confidence in giving has fallen

Public confidence in donating to charity has dropped even further behind consumer confidence, new research shows.

The Donor Confidence Index, a charity version of the measure that tracks consumer confidence, shows that public optimism towards giving has now fallen to levels seen in the aftermath of the 2009 recession.

After a post-recession dip in late 2010, the new index put donor confidence consistently ahead of consumer confidence until November last year.

But the latest data shows that donor confidence had fallen to 102 in October 2014, almost the same as the base figure of 100 recorded in January 2010.

After being ahead for over three years it now trails consumer confidence by nine points, which has risen dramatically since March 2013.

The index, published every three months by research consultancy nfpSynergy, tracks how many people give to charity, how much and how they give, changes in giving and how much they think they’ll give in the future.

This produces a rating in the same way as the Consumer Confidence Index. Like its consumer counterpart, the higher the rating, the more optimistic people are feeling about charities and giving.

NfpSynergy’s head of data analysis, Cian Murphy, said: “The disappointing results of the index suggest charitable behaviour doesn’t follow the same logic and pressures as consumer spending. While people may prioritise maintaining their giving during difficult times, when things improve they may prefer to spend on the luxuries they’ve been missing out on.

“Charities cannot assume that just because the public have a few more pounds in their pocket that they’ll be rushing out to put it in a collection tin.”