By this point in time you have undoubtably been exposed to ‘checkout charity’. You know what I mean. It’s when customers are asked to ‘round up’ their purchase, usually only a small amount, when they are completing a purchase. The benefits to charities have been enormous as the volume of low-amount donations quickly add up.
According to Engage for Good, in 2022 in the U.S., more than $749 million was raised by 77 point-of-sale fundraising campaigns. That was a 24% increase from the amount donated in 2020. Each of these campaigns raised at least $1 million. And, over 30 years the total reached $6.7 billion!
The latest user of checkout charity is the world’s largest pizza-maker, Domino’s. The company will use the tactic to meet a pledge for $174 million (over the next 10 years) to benefit St. Jude Children’s Research Hospital.
Why are checkout charity campaigns so successful? Several reasons come to mind. One is that consumers already view their purchases in whole numbers, so the mark-up feels natural. (For example, a purchase at $49.60 already feels like $50, so consumers don’t feel a pinch at the additional cents.) Another reason is it makes consumers feel good in an quick, easy way.
A downside of these campaigns is that these quick donations don’t create any meaningful connection between charities and consumers. Also, many consumers are skeptical of how their donations will be used.
Care to round up?
Group Activities and Discussion Questions:
- Discuss the use of checkout charity programs.
- View video about checkout charity: https://youtu.be/ilH7gtygP6s?si=kfXXUheT-On2wx2c
- Poll students: What have they seen? Does it influence them to contribute to charity?
- Divide students into teams. Each team should develop a research project revolving around the topic of checkout charity.
- Discuss the process for conducting market research. The student teams must address each step of the process for their project (Problem definition, research plan, data gathering, develop findings, recommend marketing actions).
- Research questions can address how often consumers donate, if they know the charity, or just give to help out or feel good about their actions.
- For reference to a research project, view: https://jpna.org/index.php/jpna/article/view/854/529
Source: Binghamton University (13 May 2024). More than half of Americans give to charity at checkout, survey shows. Phys.org.; Neuman, S. (10 March 2024). That spare change you donate at checkout is adding up to millions for charities. MPR News.; Pollard, J. (23 May 2024) Domino’s betting on ‘checkout charity’. Associated Press.
