Giant Food in Severna Park, Maryland, near Washington, D.C., is one of the many locations where customers are frequently asked to round up their bills for charity. This fundraising strategy, known as “round-up,” has become increasingly common in recent years, spanning across grocery stores, gas stations, retail outlets, and online merchants. These campaigns generate millions of dollars annually, supporting various causes such as scholarships and cancer research.
In 2022, charities in the United States collected $749 million through point-of-sale donations, marking a significant 24% increase from 2020. While this amount pales in comparison to the estimated $500 billion in charitable giving for the year, it demonstrates the growing popularity of round-up initiatives. Michelle McCarthy, the executive director of Round It Up America, notes a substantial rise in these campaigns’ success, particularly since the onset of the pandemic.
Retail giants like Taco Bell and non-profits such as the Taco Bell Foundation have benefited greatly from round-up donations. By integrating this strategy, organizations have observed an increase in customer contributions at checkout counters, self-service kiosks, and online platforms, resulting in a considerable boost in fundraising efforts.
The psychology behind the success of round-up programs lies in the simplicity and perceived lower “pain” of parting with small change, compared to fixed dollar donations. Studies have shown that individuals tend to prefer round figures, a factor that influences their giving behavior at various points of sale. Moreover, the moral implications and social pressure associated with declining a donation request can sway customers to contribute.
While point-of-sale fundraising has proven effective in raising significant funds for charities, there is concern about potential donor fatigue and the lack of meaningful connections between consumers and organizations. It remains essential for retailers and non-profits to maintain transparency and ensure that donations are directed towards intended causes, fostering trust and accountability in these donation-based transactions.