By Mike White, Head of Performance
You’d be forgiven for rolling your eyes at the news of new data laws being passed in recent months, but this time it’s different. No, really.
For once, we’re not talking about understaffed charities having to spend more time crossing T’s or dotting I’s – this new legislation is going to cut some red tape and open the doors to a world of hugely increased supporter value.
So much so that, even in a time where the rising cost of living is clearly biting in the Third Sector, it may prove transformational.
What’s changed?
Let’s quickly run through the technical stuff – The Data Use and Access Act 2025 (‘DUAA’) changes data protection laws to promote innovation and growth, making life easier whilst still protecting people and their rights.
The key part of this new legislation for charities and their marketeers is an amendment to the Privacy and Electronic Communications Regulations (‘PECR’), which details how charities will soon be able to use the ‘soft opt in’ approach to direct electronic marketing.
In short, when this part of the legislation is fully implemented (expected December 2025), charities will no longer require explicit GDPR-standard opt in consent from individuals to send them electronic marketing communications.
If a charity collects an individual’s details through their expression of interest in one of the charity’s purposes, or their offering of support to further those purposes, it will be able to communicate marketing material to that individual relating to any of those purposes (through electronic means) without having that individual’s tick-box consent to do so.
That means emails, texts, picture messages, video messages, voicemails and even direct messages via social media (or any similar message that is stored electronically, i.e. WhatsApp) are all acceptable methods of contacting these individuals, vastly increasing their value to charities through increased opportunity.
What are the real-world implications?
Consider this scenario.
It’s April 2024, you’ve just started a lottery for your charity and signed up 1,000 people to play – good work.
As part of that process, 350 of those people did not give you explicit consent to market to them by SMS, and 150 didn’t want email contact either, meaning you can only fully market your charity’s other goings on and fundraising drives to 50% of them.
In an overly simple, not at all scientific calculation, let’s presume each lottery player’s lifetime value is £200 in contributions to the charity without any marketing consent, £250 with email only consent, and £300 with full consent.
500 of the 1,000 are worth £300 with total consent, while 350 are worth £250 with just email consent and 150 are worth £200 with no marketing consent at all, so the cohort’s total value over time could be £267,500.
However, if you started your lottery in December 2025, after these new rules are due to come into force, and signed up the same players, 100% of those supporters are now ‘marketable’, so they could be worth £300,000 in donations as a total cohort, a 12% increase simply due to a change in the rules regarding the usage of their data.
But that’s a very crude way of looking at it – the reality could be even more exciting.
How much more could we do?
This legislation really could open the floodgates to so much:
- more scope for attrition management projects that keep people engaged for longer, as well as re-engagement campaigns
- more opportunity to keep supporters up to date with the charity’s projects and progress, increasing advocacy
- more warm leads to which your new fundraising drives can be marketed, increasing chances of successful campaigns
- more electronic routes to market, diversifying your charity’s communication channels
There is every chance that this new data law could help a charity significantly increase the potential lifetime value of every new supporter, whether that be through regular give, lottery or even general fundraising. And if you’re on the ball, the opportunities to convert those on the fence could be much greater too.
Bottom line? These changes will undoubtedly make charities’ efforts in online and offline marketing, supporter acquisition and retention even more important than they already are.
The ability to tip more potential supporters into your funnel relies on the quality and strategy behind your marketing and sales, both digitally and face-to-face – and that’s where Reach Fundraising comes in.
How can we help?
Whether it’s online or face-to-face, Reach Fundraising can help you deliver the most powerful version of your story to the biggest audience, all in the most cost-effective way for your charity.
We’re the bespoke marketing agency that believes when you win, we win – we’re different.
The masterminds behind one of the fastest-growing charities in the UK and the largest single-cause charitable lottery in the UK, we’ve got the tools and experience required to help you maximise this exciting new opportunity for your cause.
If you’re looking for a values-driven partner with its finger on the pulse, Reach can take your fundraising to the next level – contact us today.