Direct Debits for Charities
Movimo & Charities
The Movimo team have been supporting Charity organisations across the UK for years. We have helped train teams of recruiters, undertaken document reviews and audits and help organisations implement new processes, CRMs and software. For many, we provide a Bacs bureau service, either on a full-time or contingency basis.
If you want to ensure reliable, error-free Direct Debit collections and want the benefit of outstanding support, we can help you!
Reasons why Charities choose Direct Debit
- Increase Number of Supporters – An easy sign-up method e.g. online or via telephone can encourage supporters to donate
- Save Time – A bulk payment method means collections can be easy and quick to process
- Cost effective – Direct Debit is often the cheapest way to collect income
- Reduce Failures – Lower failure rates vs cards with useful feedback via Bacs reports
- Improve retention – Supporters can remain connected and able to donate again
- Company Image – This safe and well-regarded payment method can add credibility
FAQs: Direct Debit for Charities
Can the amount or date of a Direct Debit be changed? →
Yes! The organisation is in control. If a collection amount needs to be changed, e.g. due to additional products or services consumed, or if there is an inflationary increase in the membership price, then this is easy to do with Direct Debits. The payer would need to be provided with Advance notice of the amount in line with the Advance Notice period and then the revised amount can be collected as part of the usual Direct Debit collection process.
How long does a Direct Debit remain active? →
Direct Debits, if used, will remain active for as long as necessary – unless cancelled. This means that the membership can continue unhindered unless actively cancelled.
What feedback do you get with Direct Debits? →
Bacs provide feedback in the form of Bacs reports. These include:
- AUDDIS reports (Automated Direct Debit Instruction Service Report). These contain details of rejected and/or returned Direct Debit Instructions (DDIs).
- ADDACS reports (Advice of Direct Debit Cancellation and Amendments). These will update organisations if a payer cancels their Direct Debit.
- ARUDD reports (Advice of Returned Unpaid Direct Debits). These provide information on failed Direct Debits and the reason why.
We can help answer any questions that you may have about these Bacs Reports. Please contact us with questions!
Can any business collect money by Direct Debit? →
Bacs services are a sponsored service. This means that only organisations approved to do so can make Bacs transactions. Organisations wishing to collect money via Direct Debit or make payments via Bacs Direct Credit should contact their bank. The bank will assess the organisation e.g. according to financial stability, turnover and administrative processes etc. If the bank is willing to provide sponsorship, they will issue a Service User Number (SUN) to allow the organisation to make Direct Debit collections or Bacs Direct Credit transactions. If the bank is unwilling to provide sponsorship the organisation can consider Facilities Management – where a third party collects the Direct Debit on their behalf.
What is the Direct Debit Guarantee? →
The Direct Debit Guarantee reassures payers that if an error is made in their Direct Debit (either by the collecting organisation or by the payers bank), they will be entitled to an immediate refund. Further, it advises that this refund will be provided to the payer by their bank. You can read more about the Direct Debit Guarantee on our blog.
Case Study: How Movimo has helped LFS ensure successful Direct Debit Collections
