Are Round-Up Donations Worth It?

Would you like to round up your purchase for charity?

Most people have probably seen this at a checkout, roll their eyes, say “No,” and quickly snatch their receipt. Some are met with a sense of guilt, looking around and realizing an aversion in the cashier’s eyes. But when those few cents can become millions of dollars, maybe they are worth it. 

We have seen it time and time again, when a collective of individuals come together, a real impact can be made. With that said, one of the best perks regarding round-up donations is that an individual doesn’t need to be extremely wealthy to help make an impact. In fact, you don’t even need to spare less than a dollar. The Taco Bell Foundation recorded that the average round-up donation was just 44 cents, yet the campaign raised $42 million. According to NPR, point-of-sale donations raised $749 million for charities in 2022. 

To explain the large impact of round up donations, is to look at the convenience. The question is prompted right at check out. You don't have to remember to donate later, empty a closet, or set aside $20 from your paycheck. You can simply add a few cents to something you were already going to buy, making it one of the easiest ways to help without having to make a major commitment. 

Additionally, for a non-profit organization looking to increase their donations, round-up donations can even be backed up by physiological evidence. Northwestern University's Kellogg School of Management recorded that humans appear to have a strong liking towards figures ending with zero. Additionally the “loss” consumers feel is far less than when they are asked to enter a specific dollar amount. For example, a consumer paying $15.60 may quickly perceive their purchase as $16, making it much easier to collect those extra 40 cents because they already feel as though they are paying for it.

However, some may not trust the companies part in raising awareness for charities, believing a certain percentage is secretly pocketed in the hands of monopolies. But according to the Tax Policy Center, when customers round up, the store solely acts as collection agent for the donations. The money is not counted as the stores' income, nor can the store claim the customer's donation as its own charitable contribution. 

Of course, not everyone should feel bad for saying no. Some people may genuinely need those extra cents, and others may simply have different financial priorities. Saying no does not make someone selfish and a cashier shouldn’t scold someone either. But if a few cents won't make a difference to you, maybe it is worth saying yes.