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

The City of Vernon is sending a letter to the provincial government to request that church be deemed an essential service amid the pandemic. (Brendan Shykora - Morning Star)
Vernon mayor scolded for revealing stance on making church essential

Coun. Scott Anderson calls Cummings’ actions ‘arrogant’

Heather Barker. (File)
Manslaughter charge laid in Vernon woman’s 2018 death

Shaun Ross Wiebe, 43, faces manslaughter and assault charges related to the death of Heather Barker

Toronto Public Health nurse Lalaine Agarin makes preparations at Toronto’s mass vaccination clinic, Jan. 17, 2021. THE CANADIAN PRESS/Frank Gunn
3 deaths, 234 new cases of COVID-19 in Interior Health over the weekend

One death connected to outbreak at Kamloops’ Royal Inland Hospital, where 20 patients and 28 staff have tested positive

Kalamalka Secondary School staff and students have been warned to self isolate if showing COVID-19 symptoms after possible exposure on March 13, 2020. (Google Maps)
First case of COVID-19 in Coldstream school

Three more schools confirm positive cases

The City of Vernon’s Recreation Services is bringing back indoor walking at Kal Tire Place, with public skating also in the works over the Christmas holidays. (Brendan Shykora - Morning Star)
Vernon rec hard hit in pandemic

Cancellations and closures see expected drops in fourth-quarter report

Crews with Discovery Channel film as an Aggressive Towing driver moves a Grumman S2F Tracker aircraft around a 90-degree turn from its compound and onto the road on Saturday, Jan. 23, 2021. It was the “most difficult” part of the move for the airplane, one organizer said. (Jenna Hauck/ Chilliwack Progress)
VIDEO: Vintage military plane gets towed from Chilliwack to Greater Victoria

Grumman CP-121 Tracker’s eventual home the British Columbia Aviation Museum on Vancouver Island

Zaudanawng “Jay-Dan” Maran in his Creston home. Hanging on the wall behind him is a logo of Kachin’s Manaw festival. Photo: Aaron Hemens
From Myanmar to Creston: The story of a refugee

In October 2007, Zaudanawng “Jay-Dan” Maran and his friends encountered a woman being sexually assaulted by two Myanmar soldiers.

Kamloops This Week.
48 COVID-19 cases and one death associated with outbreak at Kamloops hospital

One of the 20 patients infected has died, meanwhile 28 staff with COVID-19 are isolating at home

The scene of a serious crash on Highway 33 in Kelowna that killed one and severely injured two others on June 20, 2018. (File)
Driver found guilty of causing death, injury in 2018 Kelowna crash

Travis Ryan Hennessy will face sentencing at a later date

(Michael Rodriguez - Capital News staff)
Downtown stairwell fire suspicious, Kelowna RCMP say

Crews were called to Gotham Nightclub for a report of a stairwell fire

Rolling seven-day average of cases by B.C. health authority to Jan. 21. Fraser Health in purple, Vancouver Coastal red, Interior Health orange, Northern Health green and Vancouver Island blue. (B.C. Centre for Disease Control)
2nd COVID vaccine doses on hold as B.C. delivery delayed again

New COVID-19 cases slowing in Fraser Health region

Head Brewer Kody Rosentreter, owner Wes Greve and taproom manager Lisa Deleo celebrated North Basin Brewing’s grand opening Jan. 22 and 23, 2020. (Contributed)
Osoyoos’ first microbrewery celebrates grand opening

The brewery hopes to show that the Okanagan is more than just wine country

Kelowna Mayor Colin Basran addresses media from the front steps of council chambers on March 23. (Michael Rodriguez - Capital News)
Kelowna, West Kelowna still looking to opt-out of speculation tax

Mayors say spec tax has missed the mark, revenue largely coming out of Canadians’ pockets

Provincial health officer Dr. Bonnie Henry talk 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. Two more cases of the COVID-19 strain first identified in South Africa have been diagnosed in British Columbia, bringing the total to three as of Jan. 16.THE CANADIAN PRESS/Chad Hipolito
B.C. now has three cases of South African COVID-19 variant, six of U.K. strain

Both variants are thought to spread faster than earlier strains

Most Read