Would you like to round-up for charity?
Point-of-sale donations, especially “round-up” campaigns, have seen a significant surge in recent years, raising millions of dollars for various charitable causes. In 2022, these campaigns brought in $749 million, a 24% increase from 2020. A recent survey conducted by Binghamton University faculty revealed that 53% of Americans give impulsively to charities at the checkout, with certain demographics being more likely to donate. Women, Black respondents, and middle-class individuals under 50 who have not attended college were found to be the top-giving demographics, contrasting with traditional donors who are usually older, higher-earning college graduates.
The success of round-up donations can be attributed to several factors, including the perceived lower “pain” of donating spare change, the human preference for round numbers, and the subtle guilt induced by declining a low-cost request. Taco Bell Foundation, for example, doubled its annual fundraising by switching from asking for $1 donations to a round-up strategy. Similarly, Children’s Miracle Network Hospitals raised $138 million in 2022 through point-of-sale campaigns, accounting for a third of its total fundraising.
However, the ubiquity of these requests may lead to donor fatigue, and some consumers express concerns about the transparency of where their donations are going. Despite these potential drawbacks, the success of round-up campaigns is undeniable, and they have become a significant source of funding for many nonprofits, raising the profile of local organizations doing fantastic work in customers’ own communities.
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