The DMA is joining forces with Salocin Group agency Wood for Trees and nearly 20 leading UK charities to call on the Government to reinstate a key clause in the new data reform bill to extend the “soft opt-in” for email marketing to the third sector, amid claims the U-turn could benefit charities to the tune of £290m a year.
While the industry body initially welcomed the Data (Use & Access) Bill when it was published in October, it has since emerged the soft opt-in clause contained in the bill’s predecessor – the Data & Digital Information Bill – has been scrapped.
Now, the DMA has issued a letter to the Secretary of State for Science, Innovation & Technology Peter Kyle on behalf of its charity members, calling on the Government to address a key amendment to support charity fundraising.
Some 19 major UK charities have now backed the DMA’s letter to extend the ‘soft opt-in’, although the DMA insists it continues to be highly supportive of the bill.
It says it is working closely with the Government on improvements to the text, which will form a central pillar of the UK’s data protection framework.
The letter states: “The omission of the soft opt-in will prevent charities from being able to communicate to donors in the same way as businesses can. As representatives of both corporate entities and charitable organisations, it is unclear to the DMA why charities should be at a disadvantage in this regard.
“Donors and volunteers to a charity have an extremely emotional connection to the cause they are supporting, whether that be saving children, animals, cancer research or a myriad of good causes.”
The missive continues: “In 2023 the British Public donated £28bn to charity including legacies. However, the cost-of-living crisis has made it significantly more expensive to deliver the services charities provide, and the recently announced increase in employer’s national insurance is expected to cost charities £1.4bn, making it an imperative for many charities to increase donations if they are to survive.
“We understand the government has had to take tough decisions about the economy, including the rise in National Insurance for employers. While not a silver bullet, including the soft opt-in for email marketing for charities will help facilitate greater fundraising and go some way to mitigating the additional burden while demonstrating that the government understands the important work they do for society.”
J Cromack, chief growth officer for Wood for Trees, part of The Salocin Group, said: “Our data analysis indicates charities could potentially get an additional 3% income per year, equivalent to £252m for the sector (England and Wales) – from the reinstatement of charity soft opt-in.
“However, without it, charities currently have a contactable file of around 20%. We’d expect this to grow considerably for committed charity donors to around 50% (considering businesses currently have between 30-70% of customers opted-in, depending on the sector). We anticipate this could lead to an additional annual gain of £840m in the next 10-15 years.
“Including the voluntary income figure for Scotland and Northern Ireland, we estimate this will increase these figures by 15%, upping the total to £290m of potential additional UK charity income per annum.
“Email marketing for charities can be an extremely valuable asset to improve supporter experience and increase long-term value. We’ve the chance to make a real difference and ensure charities don’t continue to miss out on millions of additional revenue to fund their critical missions by reinstating soft opt-in for charities in the DUA Bill and securing government support.”
It is understood that an amendment will now be tabled in the House of Lords to reinstate the clause, although the Government’s official stance has not been disclosed.
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