Mixed Feelings Over ‘Round Up for Charity’ Requests
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What is the main topic discussed in this episode?
This episode is brought to you by Charles Schwab. Decisions made in Washington can affect your portfolio every day. Washington Wise from Charles Schwab is an original podcast that unpacks the stories making news in Washington. Listen at schwab.com slash Washington Wise.
Here's your money briefing for Thursday, August 31st. I'm J.R. Whelan for The Wall Street Journal. Seems like it happens every time you go to checkout at the store. After swiping your card, you get a prompt asking you to round up your purchase to donate to charity.
People are starting to feel a bit manipulated by what they see as a barrage of requests. First, it was prompts to tip, now requests for charity. But they're sick and tired of these multi-billion dollar companies asking them for money.
Why are checkout roundup donation prompts appearing so frequently?
And yet they continue to make donations anyway. We'll talk with our reporter Rachel Wolf about the mixed feelings that come with charity prompts at the checkout after the break.
Listen at schwab.com slash washingtonwise.
Checking out at a store often involves being asked if you want to round up your bill total for charity. Consumers say they're annoyed by the constant requests, yet many wind up donating anyway. Wall Street Journal reporter Rachel Wolf looked into this and joins me. So Rachel, why do we see these rounding up requests in so many places?
They are proliferating because they really work. Roundup requests and other checkout donations raised over $749 million in 2022 for various charities.
How much money do roundup and checkout donations actually raise?
And so more nonprofits and stores have wised up to the fact that it can be a really effective fundraising tactic while beefing up their philanthropic bona fides.
That's a lot of money they've raised. But why are people annoyed by these requests? I mean, if I'm not interested, I can just say no and move on, right?
It's a little bit more complicated than that. People are starting to feel a bit manipulated by what they see as a barrage of requests. First, it was prompts to tip, now requests for charity. They are happy to donate. They say, you know, these are worthwhile causes, but they're sick and tired of these multi-billion dollar companies asking them for money. One source said that it reminds her of billionaires flying private jets, telling everybody to use paper straws. You know, they're the ones. Burning all that fuel, but it's average people who are blamed.
Why do consumers feel annoyed or manipulated by donation requests?
Yeah, there are all different kinds of charities trying to raise money. Is the type of charity significant in people's decisions whether to make a donation?
People like it when a store has a connection with the charity. So Lowe's did a partnership with low-income home repair organization Rebuilding Together because building supplies. PetSmart has PetSmart Charities, which helps fund adoptions and pet care for low-income pet owners. So people said that they like it when it's clear what the relationship is between the organization and the charity. Those tend to do a little bit better.
But is there a guilt factor at work here? Let's say I'm checking out at a store and I have the option of donating to maybe save the kids or end poverty now. I might think about clicking decline, but I also might fear about getting some sort of side eye from the cashier. How do other people feel?
absolutely nobody wants to be that person in the checkout line looking stingy but people have hit a breaking point more people are saying no it's not the 17 cents it's the principle of the thing especially when they say that they have some fears about where the money is actually going now to be clear the organizations that i spoke to seem totally above board but There are some questions when it comes to who gets the tax benefits and perhaps if they end up donating more than they intended, as was the case with one woman I spoke to.
Yeah, people you spoke to had some frustrating experiences with these Roundup campaigns. What do they tell you?
Does the type or store-charity connection affect whether people donate?
One woman at Rite Aid, she began to notice that all of her receipts were coming out, even dollar amounts, even though she hadn't clicked Roundup.
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Chapters
8 chapters
1
What is the main topic discussed in this episode?
0:00–0:49
2
Why are checkout roundup donation prompts appearing so frequently?
0:49–2:14
3
How much money do roundup and checkout donations actually raise?
2:14–3:08
4
Why do consumers feel annoyed or manipulated by donation requests?
3:08–4:43
5
Does the type or store-charity connection affect whether people donate?
4:43–6:59
6
Can roundup prompts enroll customers automatically or cause frustrating experiences?
6:59–7:54
7
Are consumers eligible for tax deductions when they donate at checkout?
7:54–8:10
8
How might checkout donation fatigue affect nonprofits and future fundraising?
8:10–8:19
Speakers
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