Checkout charity
Checkout charity, also known as point-of-sale fundraising, refers to the phenomenon of customers at a business being asked to donate money to charitable causes. The practice is most frequent at grocery stores.[1] Checkout charity may also exist at other kinds of businesses, such as liquor stores.[2] Customers may be asked to round their purchase to the nearest dollar or make an otherwise nominal donation.[3]
Reception
[edit]Checkout charity can be effective at raising money for charities through the cumulative results of many small donations over time.[4] General attitudes towards checkout charity by customers can vary, from positive to negative. Positive reactions from customers can include an association of the halo effect.[3] Negative reactions can result from customers feeling pressured or anxious when prompted to donate to a charitable cause in this context.[5] They may also be concerned about how such funds are used.[6] Customers may also feel annoyed, particularly if they do not deem the cause to be a worthy one, as they are likely to receive prompts to donate at several retailers in their day-to-day lives.[7] A 2013 Ipsos poll determined that the majority of Canadians had a negative reaction towards checkout charity.[8]
A common misconception, often spread via online platforms, is that stores offering checkout charity do so to save money on taxes. This is not true, and is not possible; corporation taxes are assessed on profit, and a customer's donation would not change the amount of profit and therefore tax payable by the store. A business would need to donate its own money to be able to claim a tax deduction, which would in any event be many times less than the cost of the donation in profit; it is impossible to make money by donating to charity. Businesses engage in this activity to support their corporate social responsibility goals and/or improve their public image.[5][9][10][11][12]
Charities may seek donations through this method because it is more cost effective and is not as time intensive as other fundraising initiatives such as canvassing door-to-door or holding charity-specific events. In the United States, more than 4.9 billion dollars have been raised by checkout charity donations.[9]
See also
[edit]References
[edit]- ^ "Donate a dollar at the register? Checkout charity is big business for nonprofits". Tampa Bay Times. Retrieved 4 August 2023.
- ^ "Checkout Charity: Get ready for the cash register ambush". Financial Post. Reuters. Retrieved 4 August 2023.
- ^ a b Roos, Dave. "'Checkout Charity' Works — If It's Done Right". HowStuffWorks. Retrieved 10 December 2023.
- ^ "4 things to know about charity donations at checkout". Click2Houston. Retrieved 10 December 2023.
- ^ a b Lee, Na; Hepworth, Adam. "'Checkout charity' can increase a shopper's anxiety, especially when asks are automated". The Conversation. Retrieved 10 December 2023.
- ^ Griffith-Greene, Meghan. "Checkout donations: Poor transparency about where the money goes". CBC News. Retrieved 15 August 2023.
- ^ Wolfe, Rachel. "Just Like Tip Prompts, Requests for Donations at Checkout Are Everywhere". The Wall Street Journal. Retrieved 10 December 2023.
- ^ Roseman, Ellen. "Checkout charity campaigns can backfire: Roseman". Toronto Star. Retrieved 15 August 2023.
- ^ a b Nerman, Danielle. "Why nobody gets a tax benefit when you donate at the checkout". CBC Radio. Retrieved 12 May 2024.
- ^ Link, Devon (2021-06-10). "Fact check: Stores cannot use checkout charity funds to offset their own taxes". USA Today. Retrieved 2023-04-01.
- ^ Zaretsky, Renu (2020-11-04). "Who Gets the Tax Benefit For Those Checkout Donations?". Tax Policy Center. Retrieved 2023-04-01.
- ^ Swenson, Ali (2021-11-30). "Stores can't write off customer donations made at checkout". Associated Press. Retrieved 2024-11-14.