Stop Donating at the Cash Register, Already

You might be asked to make a donation to a charity when you shop online or in person. It is possible to donate the change when you round up the total of your order. You can choose to donate $1, $2, or another amount.

If you want to make a difference, you should give your money to a charity. This is what to know.

Are checkout donations a scam?

Donations made at the cash register aren't part of a scheme where they are used to reimburse retailers for previously donated funds.

Thanks to a lawsuit filed in New York in May 2022, people are once again taking a closer look at this type of charity giving. The lawsuit will probably be dismissed.

Is this type of fundraising effective?

Most of the money raised at the checkout counter in 2020 was donations of less than $1. If nothing else, that is money that these charities would not have received.

Laurie Styron, executive director of CharityWatch, told Verywell Health that it wasn't necessarily that straightforward. A considerable amount of time may pass between when you make your donation at the cash register and when the charity sees the money.

Styron told Verywell Health that donations may never make it to the charity. She recommends donating directly to charities instead of through third parties.

Why you should skip donating to charities at the cash register

It's usually a better idea to donate directly to your favorite charities than it is to checkout. This is why.

You can choose where your money goes

Checkout donations go to a charity that the retailer chooses. It's not that there's anything wrong with their choice, but you might want to give your money to a local charity or one that benefits a specific medical condition that affects you or your family.

It makes doing your taxes easier (if you itemize deductions)

The amount of their income can be reduced by using charitable donations. It is much easier to make a donation directly to a charity than it is to use your receipts as a record.

It gives you the chance to research the charity

You can use websites like CharityWatch and Charity Navigator to find out more about different organizations and how they spend their money. You don't have time for that when you donate at the checkout.