In this Nov. 9, 2018, file photo money gets dropped into the kettle during the Annual Salvation Army Red Kettle and Angel Tree Kick Off outside the Hobby Lobby store in Augusta, Ga. Canada’s Salvation Army is testing out a new and faster way to allow cashless donations to its kettle stations via debit and credit card, making the process as quick and easy as dropping a toonie in the bubble. THE CANADIAN PRESS/AP-Michael Holahan/The Augusta Chronicle via AP, File

In this Nov. 9, 2018, file photo money gets dropped into the kettle during the Annual Salvation Army Red Kettle and Angel Tree Kick Off outside the Hobby Lobby store in Augusta, Ga. Canada’s Salvation Army is testing out a new and faster way to allow cashless donations to its kettle stations via debit and credit card, making the process as quick and easy as dropping a toonie in the bubble. THE CANADIAN PRESS/AP-Michael Holahan/The Augusta Chronicle via AP, File

No cash? Salvation Army USA’s red kettle campaign now accepts mobile donations

Charity’s leaders hope adding Apple and Google payment options will boost giving to the red kettle campaign

Carolyn Harper made her pitch for donations to the Salvation Army with a smile on her face and a bell in her hand, trying to convince shoppers along Chicago’s busy Michigan Avenue that there was “no line, no wait.”

Despite her prodding, half a dozen people apologetically explained they had no cash to drop into the bright red kettle. Most passed on before Harper could explain there’s a new way to donate to the classic fundraising campaign this year: with a smartphone.

Heather Bishop, 35, was among those who did wait to hear about the non-cash option. She quickly completed her electronic donation while keeping an eye on her two young children after a stop at the American Girl store.

“It was fast, very easy,” Bishop said, adding that she was visiting the city from Wisconsin and doesn’t carry cash while on trips. “All of my giving is online.”

The charity’s leaders hope adding Apple and Google payment options will boost giving to the red kettle campaign, which makes up 10% of its annual fundraising. Those donations fund programs providing housing, food and other support to people in poverty.

“Those red kettle campaign funds help us throughout the entire year housing the homeless, feeding the hungry and helping families overcome poverty,” said Dale Bannon, the assistant national community relations director for Salvation Army USA.

“I think the future is bright, but we have to be flexible and provide multiple options for people to give.”

Americans’ dependence on physical cash to make purchases has declined over time, especially among people who make more than $75,000 per year, according to the Pew Research Center. The same survey found about 46% of Americans “don’t really worry much” about leaving home without cash because of all their other payment options.

Nonprofits of all types have increased their focus on online fundraising in response, but campaigns that rely on spur-of-the-moment donations outside stores directly feel the effects of consumers’ cashless lifestyle.

The organization has tested other cashless options in recent years, including a text message-based program and credit and debit card readers that plugged into bell ringers’ phones. But both were time consuming compared to dropping cash into the kettle.

Donors preferred “an easy and quick” option, Bannon said.

The physical change to the kettles is subtle — a tag containing microchip has been added to the Salvation Army sign attached to each red kettle stand.

Donors tap their phone to the tag, opening a donation form that suggests giving $5, $10 or $25. Donors also can type in a different amount.

People whose phones aren’t compatible with contactless payment systems can use their camera to photograph a QR code, opening a similar donation form.

Any mobile donations are sent to the Salvation Army chapter nearest to the donor’s billing zip code.

This year marks the 129th campaign using the bright red kettles, staffed by bell ringers outside grocery stores and popular shopping spots. For at least five years, it has been clear that cashless shopping was affecting donations, Bannon said.

The organization tested Apple Pay and Google Pay in four cities last year, and officials decided to roll the options out nationally this year as they aim to raise $150 million.

This year’s holiday calendar shaves six days off the Salvation Army’s typical window for the red kettle campaign, and officials hope the mobile options will help make up for that lost time. Bell ringers will be out in force starting the day after Thanksgiving, though many chapters launched their efforts in early November.

Anecdotally, nonprofits believe donors could wind up giving more via mobile than they would in spare change or dollar bills. They reason that someone pulling out a phone will choose one of the suggested dollar amounts, likely exceeding a few singles or loose change from a coat pocket.

A digital donation also gives the non-profit information about donors that lets the organization follow up by email. Creating that opportunity for future giving is impossible with cash, said Una Osili, associate dean for research at Indiana University’s School of Philanthropy.

“Anytime you can expand opportunities to reach new donors, that’s a win for the organization,” Osili said.

Non-cash gifts have one financial downside though. They trigger financial processing fees, said Rick Cohen, a spokesman for the National Council of Nonprofits.

Small businesses can try to offset processing fees in the cost of their goods. Nonprofits don’t have that option, though some organizations do ask donors to voluntarily increase their total gift and cover fees, he said.

“You always want to meet the donors where they are, but there’s an opportunity cost,” he said.

Bannon said there is a processing fee for mobile donations at red kettles, ranging between 2 and 2.5% depending on which card a donor connects to their Apple or Google Pay account.

Harper said she hopes the new options will increase donations to the Salvation Army. Her only concern is cold temperatures in Chicago and other parts of the country discouraging people from stopping to use the mobile system.

“Right now, it’s easy,” she said. “Hopefully it works out when it’s really cold out. Let’s keep our fingers crossed.”

ALSO READ: Salvation Army sending record number of kids to camp

Kathleen Foody, The Associated Press

Like us on Facebook and follow us on Twitter.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

February is Black History Month. (Photo: Government of Canada)
Camosun College highlighting Black content with research guide during Black History Month

The collection includes a range of works by Black authors and creators

Amy Morrison was surprised to find a note on her windshield for parking on a public street with no restrictions in south Oak Bay where she works. (Amy Morrison Photo)
Oak Bay resident uses notes to claim street parking

‘You must have noticed, we park in front of OUR HOUSE,’ note writer says

Debra Sheets, a University of Victoria nursing professor, is starting Victoria’s first Memory Cafe program for adults with dementia and their caregivers. (Photo: Debra Sheets)
Memory Cafe Victoria hopes to connect local dementia community

Adults with dementia and their caregivers will participate in weekly Zoom socializing and activities

Several BC Ferries sailings are cancelled Friday due to adverse weather. (Black Press Media File)
UPDATED: All B.C. Ferries sailings cancelled due to wind, weather

Adverse weather causes cancellations across several BC Ferries routes

Dr. Bonnie Henry leaves the podium after talking about the next steps in B.C.’s COVID-19 Immunization Plan during a press conference at Legislature in Victoria, B.C., on Friday, January 22, 2021. THE CANADIAN PRESS/Chad Hipolito
COVID: 589 new cases in B.C., and 7 new deaths

No new outbreaks being reported Feb. 26

The Canada Revenue Agency says there were 32 tax fraud convictions across the country between April 2019 and March 2020. (Pixabay)
Vancouver man sentenced to 29 months, fined $645K for tax evasion, forgery

Michael Sholz reportedly forged documents to support ineligible tax credits linked to homeownership

Then-Liberal leader Andrew Wilkinson looks on as MLA Shirley Bond answers questions during a press conference at Legislature in Victoria. (Chad Hipolito / THE CANADIAN PRESS)
B.C. Liberal party to choose next leader in February 2022

Candidates have until Nov. 30 to declare whether they are running

After nearly 10 months of investigations, Mounties have made an arrest in the tripping of an elderly woman in Burnaby this past April. (RCMP handout)
VIDEO: Mounties charge suspect for tripping elderly woman near Metrotown in April

32-year-old Hayun Song is accused of causing bodily harm to an 84-year-old using her walker

British Columbia provincial health officer Dr. Bonnie Henry arrives to view the Murals of Gratitude exhibition in Vancouver, on Friday, July 3, 2020. THE CANADIAN PRESS/Darryl Dyck
Death threats mount against Dr. Bonnie Henry, sparking condemnation from Horgan, Dix

Henry has become a staple on televisions in homes across British Columbia since January 2020

Shoppers will be able to get their hands on signed bottles of Ryan Reynolds’ new gin at B.C. liquor stores this summer. (Twitter/Ryan Reynolds)
Ryan Reynold’s Aviation Gin autographed and coming to B.C. stores

This summer 100 bottles will be available to the public for purchase across five B.C. liquor stores

Provincial health officer Dr. Bonnie Henry updates B.C.’s COVID-19 situation at the B.C. legislature. (B.C. government)
‘Stay local’: Dr. Henry shoots down spring break travel for British Columbians

B.C. is reportedly working with other provincial governments to determine March break policies

Anyone with information on any of these individuals is asked to call 1-800-222-TIPS (8477) or visit the website victoriacrimestoppers.ca for more information.
Greater Victoria Crime Stoppers wanted list for the week of Feb. 23

Greater Victoria Crime Stoppers is seeking the public’s help in locating the… Continue reading

(Black Press Media File Photo)
POLL: Are you struggling with Greater Victoria’s cost of housing?

While Victoria remains one of the most expensive cities in the country… Continue reading

Most Read