Why charity donation requests at the checkout can backfire
"Would you like to donate $2 to charity today?"
If you've been Christmas shopping this season, you've likely heard this question and felt pressured to donate amidst a cost-of-living crisis, according to marketing experts Arvid O.I. Hoffman, David Matthews, Sally Rao Hill, and Ying Zou. An increasing number of stores now ask customers to donate money at the checkout, a practice known as "checkout charity."
Cashiers ask for small donations as customers pay for their purchases, and this strategy seems effective, as evidenced by the fundraising success of global retailers. For instance, in Australia, the clothing retailer Cotton On raised approximately A$20 million in 2024 through checkout charity campaigns. In the United States, the pizza chain Domino's raised over US$126 million (A$190 million) for St. Jude Children's Research Hospital by inviting customers to round up their bills and donate.
At first glance, checkout charity appears to be a win-win-win: charities receive funding, companies appear caring, and customers have the chance to do good. However, recent studies suggest a potential dark side to these requests, prompting a deeper investigation into whether they could backfire on retailers and charities in Australia.
Christmas cheer or checkout fear?
Are customers genuinely happy about being asked to donate at the checkout? Our research indicates that many do not. Instead, they often feel pressured, guilty, anxious, and pushed into making unplanned decisions, or they fear being the Grinch if they don't donate.
When doing good starts to feel bad, these negative feelings need an outlet. They might be directed at the retailer or the cashier, which is why we studied whether well-intentioned checkout donation campaigns can backfire, why this happens, and how it unfolds in practice.
What we studied
We surveyed 329 consumers, presenting them with a checkout donation scenario and asking about their feelings, thoughts, likelihood of donation, retailer view, and future store visits.
The results were clear: well-intended donation requests can backfire. Some responses included:
- "The grocery store has more money than I do. Why am I expected to make a donation?"
- "They're using societal shame to coerce people into donating."
- "I don't donate because I'm unsure how stores allocate funds."
Analyzing the impact on behavior, we found that consumers experiencing negative emotions due to checkout donation requests were less willing to donate, less satisfied with their shopping experience, and more critical of the retailer.
Warm glow or cold scepticism?
Checkout charity requests create time pressure and social pressure, making customers feel rushed and judged. This discomfort leads to scepticism about the request's motives, with many suspecting companies may be trying to improve their public image rather than genuinely helping those in need. Some incorrectly believe companies receive tax benefits from donations, while others worry about the money's intended use.
In summary, checkout charity campaigns might backfire for retailers and charities alike.
How to make checkout charity work better this Christmas
Checkout charity doesn't have to fail. Our findings suggest that stores should introduce donation information early in the shopping journey using posters or flyers, reducing surprise and time pressure at the checkout. Woolworths' Easter appeal, for instance, flagged checkout donations in advance.
Retailers can design payment screens for private donation choices, reducing the feeling of being watched or judged. Supermarkets have started implementing this at self-serve checkouts.
Campaigns can use emotionally engaging stories to showcase the impact of donations, rather than relying solely on cold, hard numbers.
Most importantly, companies should communicate clearly and transparently about donation processes, intended use, and impact to rebuild trust and reduce customer scepticism.
Arvid O.I. Hoffmann, Professor of Marketing, University of Adelaide
David Matthews, Lecturer in Marketing, University of Adelaide
Sally Rao Hill, Associated Professor in Marketing, University of Adelaide
Ying Zou, PhD Researcher in Marketing, University of Adelaide
This article is republished from The Conversation (https://theconversation.com/checkout-charity-requests-often-backfire-leaving-shoppers-feeling-guilty-new-study-271731) under a Creative Commons licence.
