#198: Donating at checkout - where does the money go?
#198: Donating at checkout - where does the money go?
The few times I decide check out in-person at a grocery store (instead of self checkout), I get prompted to donate for charity.
Sometimes it’s simple round-up and a few cents being donated, and other times it’s selecting $1, $2, $5, $10, or “No Thanks” on the Verifone machine.
Well… How are consumers generally feeling about this? How much money is really being donated? Where does the money go?
The Complaints
Couple reasons why some consumers are growing tired of these "tiny appeals" for goodwill:
Tipping prompts are becoming more and more common, beyond the good ol' coffee shops. For instance, paying 25% tip (or not) for a $3 coffee… So, seeing more and more donating prompts can also add to the fatigue.
In some cases, stores or corporations can earn tax benefits from your donations, which can be turn off for some consumers once they know the fact.
Here’s How Much
Donations at checkout are up 24% from 2020 and could show figures twice the magnitude of 2016 levels very soon.
Round-up's are especially effective - Stop & Shop raised $1.7mm to fight breast cancer in 2022.
Per philanthropy software company Accelerist, ~73% of shoppers feel neutral or positive about being asked for a donation at checkout (overall pretty good), though it's down from 85% in 2021.
Now, I’m curious…
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