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Are Round Ups the Best Business Fundraiser? J.C. Penney Thinks So

February 20, 2013

jcPenney-cares_round-upRegister programs, pinups, donation boxes and round ups fall under what I call point of sale programs (or POS). All four programs happen at checkout when the cashier is interacting with the customer and processing payment.

WHICH ONE IS THE BEST? I HAVE TO GO WITH THE ROUND UP. HERE’S WHY:

  1. Round ups aren’t passive. Register programs and donation boxes happen at checkout, but the cashier doesn’t initiate them, which means they’ll raise less money. Whereas round ups begin with a request from the cashier: “Do you want to round up your purchase to the nearest dollar to help children with cancer?” Just like at McDonald’s when the cashier asks you if you want to supersize your meal, an ask from the cashier works!
  2. Round ups raise more money. I don’t have any scientific evidence, but I think when someone asks you to donate less than a buck it’s easy to say yes. I’ve seen pinup programs ask for as much as five dollars. But fewer people will say yes. A round up ask is one that everyone can say yes to.
  3. Round ups are easy to execute. No donation boxes, no coin-counting, no paper waste, no need for posters, pins or register signs. The cashier handles the entire transaction from ask to processing. Round up programs are lucrative, inexpensive and efficient. They’re the perfect POS fundraiser!
One retailer that has made round ups a priority is department store chain J. C. Penney. They’re currently using round ups both in their stores and online to raise money for a different charity every month.

Some of the benefiting organizations include The Salvation Army and Share Our Strength. February’s recipient is Dress for Success. As of Valentine’s Day, J. C. Penney had raised over $400,000 for the charity that helps women join the workforce in style. The department store chain has a daily ticker of dollars raised.

Since J.C. Penney launched the round up program as part of JCP cares in July 2012, it’s raised over one million dollars per month. While the average round up is just 44 cents, shopper participation has been high.

“We really try to pick charities that are relevant to the month,” said Miki Woodard, J. C. Penney’s Vice President of Philanthropy, on CauseTalk Radio. “When we launched the program July 1st we chose the USO in support of our troops. In December, we supported The Salvation Army.” To give women a new start in the new year, Dress for Success is February’s recipient.

Round ups aren’t the only way J. C. Penney supports nonprofits. Their support for the USO included a donation for every check-in on Foursquare. The retailer invited The Salvation Army to setup red kettles outside Penney stores. During the month they supported the National 4-H Council, they donated a dollar from every haircut in their salons.

J. C. Penney is a fan of round ups, but they round out their support for nonprofits with in-store events.

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