Severna Park, Maryland – Round-up campaigns for charity have become a common sight at grocery stores, gas stations, retail outlets, and online stores in recent years. These campaigns, where customers are asked to round up their payment for charity, have been highly successful, with millions of dollars being raised annually for various causes, from scholarships to cancer research.
In 2022, charities nationwide raised $749 million through point-of-sale donations, marking a 24% increase from 2020. While this figure pales in comparison to the estimated $500 billion in total charitable giving that year, it signifies a significant growth in round-up donations. Michelle McCarthy, executive director of Round It Up America, attributes this surge in donations to a growing trend, especially since the onset of the pandemic.
One key contributor to the success of round-up campaigns is customer generosity. Despite the bombardment of donation requests at checkout counters and self-checkout kiosks, data shows that customers like Michael Rindos are giving more each year. Even small contributions, like the average 44-cent donation to the Taco Bell Foundation, can add up to substantial amounts when collected from numerous locations.
For organizations like Children’s Miracle Network Hospitals, round-up campaigns have been a game-changer, raising $138 million in 2022 through various fundraising efforts. These campaigns, including round-ups, accounted for a third of the organization’s total fundraising that year, showcasing the impact of such initiatives.
Psychological factors play a significant role in the success of round-up campaigns, according to experts like Katie Kelting and Ike Silver. The concept of “pain” in parting with money, as well as a preference for round numbers, influences customers’ willingness to donate. Additionally, the opportunity to signal care and compassion through small donations adds a moral dimension to the decision-making process at checkout.
While round-up campaigns have proven effective in raising funds for charities, some customers like Paula Nichols express skepticism about where their money is going. Organizations like Round It Up America emphasize transparency in donation agreements to ensure that a significant portion of the funds collected reaches the intended charitable causes.
Despite the success of point-of-sale fundraising, there is a concern that customers may become overwhelmed with constant donation requests. It is essential for retailers to strike a balance between raising funds for charity and respecting customers’ preferences and boundaries to maintain the effectiveness and integrity of these campaigns.
