Checkout charity
{{Short description|Fundraising method}}
File:REMA 1000 Supermarket interior grocery store Tønsberg, Norway 2017-11-03 cashier checkout e.jpg
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.{{cite web |title=Donate a dollar at the register? Checkout charity is big business for nonprofits |url=https://www.tampabay.com/news/business/retail/donate-a-dollar-at-the-register-checkout-charity-is-big-business-for/2139533/ |website=Tampa Bay Times |access-date=4 August 2023}} Checkout charity may also exist at other kinds of businesses, such as liquor stores.{{cite web |title=Checkout Charity: Get ready for the cash register ambush |url=https://financialpost.com/personal-finance/checkout-charity-get-ready-for-the-cash-register-ambush |website=Financial Post |publisher=Reuters |access-date=4 August 2023}} Customers may be asked to round their purchase to the nearest dollar or make an otherwise nominal donation.{{cite web |last1=Roos |first1=Dave |title='Checkout Charity' Works — If It's Done Right |url=https://money.howstuffworks.com/checkout-charity-is-good-for-business.htm |website=HowStuffWorks |access-date=10 December 2023}}
Reception
Checkout charity can be effective at raising money for charities through the cumulative results of many small donations over time.{{cite web |title=4 things to know about charity donations at checkout |url=https://www.click2houston.com/consumer/2022/12/19/4-things-to-know-about-charity-donations-at-the-checkout/ |website=Click2Houston |access-date=10 December 2023}} 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. Negative reactions can result from customers feeling pressured or anxious when prompted to donate to a charitable cause in this context. They may also be concerned about how such funds are used.{{cite web |last1=Griffith-Greene |first1=Meghan |title=Checkout donations: Poor transparency about where the money goes |url=https://www.cbc.ca/news/business/checkout-donations-poor-transparency-about-where-the-money-goes-1.2963923 |website=CBC News |access-date=15 August 2023}} 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.{{cite web |last1=Wolfe |first1=Rachel |title=Just Like Tip Prompts, Requests for Donations at Checkout Are Everywhere |url=https://www.wsj.com/personal-finance/donation-store-checkout-charity-tipping-a5282806 |website=The Wall Street Journal |access-date=10 December 2023}} A 2013 Ipsos poll determined that the majority of Canadians had a negative reaction towards checkout charity.{{cite web |last1=Roseman |first1=Ellen |title=Checkout charity campaigns can backfire: Roseman |url=https://www.thestar.com/business/personal-finance/checkout-charity-campaigns-can-backfire-roseman/article_cdf6ef70-c196-5133-a804-e2868f4c58d6.html |website=Toronto Star |access-date=15 August 2023}}
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.{{cite web |last1=Lee |first1=Na |last2=Hepworth |first2=Adam |title='Checkout charity' can increase a shopper's anxiety, especially when asks are automated |url=https://theconversation.com/checkout-charity-can-increase-a-shoppers-anxiety-especially-when-asks-are-automated-190495 |website=The Conversation |access-date=10 December 2023}}{{cite web |last1=Nerman |first1=Danielle |title=Why nobody gets a tax benefit when you donate at the checkout |url=https://www.cbc.ca/1.6524462|website=CBC Radio |access-date=12 May 2024}}{{cite news |last=Link |first=Devon |date=2021-06-10 |title=Fact check: Stores cannot use checkout charity funds to offset their own taxes |url=https://eu.usatoday.com/story/news/factcheck/2021/06/10/fact-check-false-claim-checkout-charities-offset-corporate-taxes/7622379002/|work=USA Today |access-date=2023-04-01}}{{cite web | url = https://www.taxpolicycenter.org/taxvox/who-gets-tax-benefit-those-checkout-donations-0| title = Who Gets the Tax Benefit For Those Checkout Donations?| last = Zaretsky| first = Renu| date = 2020-11-04| website = Tax Policy Center| access-date = 2023-04-01}}{{cite news | last=Swenson | first=Ali | date=2021-11-30 |title =Stores can't write off customer donations made at checkout |url=https://apnews.com/article/fact-checking-000329849244|work=Associated Press| access-date=2024-11-14}}
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.
== See also ==