Question

Topic: Customer Behavior

Collecting Donations In-store:value Or Harm?

Posted by kevind on 9/30/2009 at 8:24 AM ET 500 Points
Our company has a charitable foundation which is funded mostly from a small contribution we make from each sale at one of our stores. We also have a variety of fundraisers throughout the year. Our CEO wants to add a donation jar at each of our stores. I personally am getting tired of being asked to contribur=te to a charity every time I go shopping. Am I just a heartless stingy SOB? Is there any research to support customer overload when being bombarded with requests for charitities?

As much good as our charity does, my fear is that it may do more harm in the eyes of our customers.Your opinions are most welcomed. Any hard data you have would rock. Thanks.
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RESPONSES

  • Posted by CarolBlaha on 9/30/2009 at 9:01 AM Accepted
    I don't mind charities at a store -- especially something unobtrusive as a donation jar. If I believe in the org, I am happy to share. A lot of people, especially men, might drop the change in the jar instead of their pocket. People may choose shopping at your store because they believe in your charily.

    Look at places like Whole Foods-- people certainly don't go there for price. But they believe in their values. And they shop and pay extra. And there are jars for various orgs all over the place.
  • Posted on 9/30/2009 at 9:17 AM Accepted
    I don't think having a donation jar causes a problem, and you can increase the likelihood for donations by presenting something visual that illustrates the benefits the charity provides. I would not have cashiers point it out - just make it unobtrusive.
  • Posted by Jay Hamilton-Roth on 9/30/2009 at 11:22 AM Accepted
    A passive donation jar allows people to donate anonymously. From your organization's perspective, they'd rather know who's donating so they can contact them again in the future. Also, donations increase when you describe exactly how the money will be used (a fund to send children to summer camp, etc.).
  • Posted on 9/30/2009 at 5:34 PM Accepted
    Kevin,

    Shoot me an e-mail...

    [Email address deleted by staff. Use Member Profile for this info]

    Some info that will help.
  • Posted by kevind on 10/5/2009 at 9:09 AM Author
    Thank you everyone for your insights. Seems all of you were unanimous that a passive collection would not be seen as a negative. I am accepting all answers. Thanks again.
  • Posted by Chris Blackman on 10/9/2009 at 11:24 PM Accepted
    There's a minor-share supermarket chain in Australia that makes community giving a key part of its differentiation.

    https://www.ritchies.com.au/benefits.html

    A percentage of all profits is donated, but the key here, is that shoppers can stipulate the charity or community organisation they want their share to go towards.

    As Marcus says above, you can make this an attractive way for people to give, for groups to earn income, and for your business to garner local community support.

    Being passive is inoffensive, no doubt.

    Being ACTIVE could be a hugely beneficial differentiator for your business within the local community.

    The donation jar will just underline the commitment of your firm to "doing well, by doing good".

    Hope that helps.

    ChrisB
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