Myth-Busting: Why online donations are better than cash at funerals  

24 October 2024

As funeral directors, you will be familiar with the logistical challenges that come with collecting in-memory donations.  The trend towards online donation pages, in place of cash and cheques, is growing at pace but the associated processing fees are a concern for some families.     

In a recent conversation with a funeral director, they mentioned that some families are put off by the perceived extra cost of online collections. However, when we dug deeper, it became clear that the actual cost of handling cash and cheques is far more significant - both in terms of time and value lost to the charity.  Here’s why.

Hidden costs of processing cash and cheques 

Handling cash or cheques requires time and manpower.  Collecting cash, counting donations, ensuring security, and making trips to the bank, all take time.  For you as a funeral director, this means dedicating many hours to administrating donations, and incurring cost, rather than focusing on your service to your families and community.  

Online donations save time and money for recipient charities, as handling cash and cheques is more time-consuming.  Gift Aid can also be processed automatically with online donations. Without this option, Gift Aid must be processed manually and is often missed altogether.  

Risks associated with handling cash   

Trust is key to any funeral business's reputation. You are responsible for safeguarding cash during and after the funeral.  Handling cash in-branch comes with risks which must be managed, adding more complexity to day-to-day operations.  And what if something goes missing?  With online donations, you can assure families that every penny is accounted for and traceable. 

Gift Aid boosts the value of donations  

With online donations, charities can easily claim Gift Aid, adding an extra 25% to eligible donations. This means a £100 donation becomes £125 at no extra cost to the donor. When using cash or cheques, charities often miss out on this extra boost, as cash collections don’t come with complete Gift Aid forms.

People donating via a MuchLoved page can simply tick a box to add Gift Aid and the extra funds are transferred to the charity as part of their donation payment. (We check with the Charity Commission that charities are registered for Gift Aid). 

People give more when using cards   

Donations via MuchLoved increased by 20% in 2023, showing the popularity of making donations online and, interestingly, people tend to donate more when they give online. This can lead to a larger overall collection in memory of a family’s loved-one, and a bigger impact for the charity that means so much to them.

Recognition and transparency for charities  

When donations are given in cash, charities sometimes don’t know who they are in memory of.  With online donations, they can easily see who donated and who the tribute owner is, enabling them to thank the next of kin and acknowledge the impact of the collection. This personal touch is something that many families really appreciate.

As one of our partner charities put it: 

Convenience for families and funeral attendees 

One of the key benefits of online donations is that they don’t distract from the funeral proceedings so families can focus on what matters most, honouring their loved one.  For funeral directors, this means you can support your families rather than handling envelopes. 

The service is less likely to overrun when you don't have to collect envelopes afterwards.  Tribute details can be shared easily using a QR code on the back of the Order of Service, and this encourages people to donate after the service.  Often donations are still being made several weeks later. 

During the funeral service, the celebrant or minister often mentions the charities chosen by the family in lieu of flowers.  They might also mention at this point that donations can be made online via the QR code. 

While the shift to online donations may initially appear to come with added costs, the reality is that there are benefits for everyone.  The entire process becomes easier, more secure, and more impactful for everyone families, charities and funeral directors. 

© MuchLoved Limited 2024, Company Number 14965211.
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