Charity checkouts: A systematic literature review of (potential) downsides

• In Event: Unveiling Insights through Literature Reviews

Abstract

Charity checkouts (CCs) are a recent phenomenon and a growing trend in fundraising describing a situation in which companies solicit their customers to donate a small amount of money at the checkout (Giebelhausen, Lawrence, & Chun, 2021). Such point-of-sale donations involve a triadic structure in which charities reach out to individual donors through a cooperation with businesses.

At first sight, CCs seem to benefit all parties of this triad (Hessekiel, 2017). For businesses, it is a new way to address the rising demand for Corporate Social Responsibility, potentially improving their reputation. For charities, it is an easy way to reach a large group of donors and thus collect large amounts of money. CCs have, for instance, managed to raise an impressive $4.1 billion over three decades (Engage for good, 2019). Finally, CCs allow consumers to act altruistically in a seemingly effortless way.

Although CCs seem to be very promising, more and more concerns are being raised. Both professional and academic literature suggest and/or demonstrate several (potential) downsides (e.g., Massetti, Mohr, & Murphy-Holahan, 2019). In order to realize the full potential of this recent fundraising phenomenon, it is vital to have a comprehensive understanding of the potential downsides of CCs for all three stakeholders involved. Such overview, however, is currently lacking. Therefore, this study systematically reviews both academic and grey literature (e.g., blogs, professional magazines, …) with the goal to develop a comprehensive overview of all (potential) downsides of CCs.

Findings indicate some general drawbacks of CCs that do not specifically relate to one of the stakeholders involved (i.e., businesses, charities, and consumers/donors). These drawbacks are related to legal issues, limited knowledge about and negative attitude towards CCs. Next, we structure the potential downsides for each of the three stakeholders. Downsides for businesses and charities relate, among others, to the interdependence of other stakeholders, potential negative affective, cognitive and reactive reactions towards the organisation, disrupted relationship building, financial restrictions, and administrative burden. Downsides for consumers are, among others, about a lack of freedom of choice and transparency, perceived social and time pressure, and experiencing negative affective reactions.

This research aids nonprofits and businesses engaged in CC triads in making informed decisions for a sustainable growth of their fundraising and CSR strategy. Beyond its practical implications, this study contributes to the limited academic literature on CCs as a promising fundraising tool.

References

Engage for Good (2019). America's charity checkout champions report. Retrieved from
https://engageforgood.com/ccc2017/.
Fowler, K., & Thomas, V. L. (2019). Pay-what-you-want with charitable giving positively impacts retailers. Journal of Services Marketing, 33(3), 273-284.
Giebelhausen, M., Lawrence, B., & Chun, H. H. (2021). Doing good while behaving badly:
Checkout charity process mechanisms. Journal of Business Ethics, 172, 133-149.
Hessekiel, D. (2017). Donating at checkout remains high amidst retail slump. Retrieved
from https://www.forbes.com/sites/davidhessekiel/2017/06/20/charity-checkout-champions/#2a92e6f86e13.
Massetti, B., Mohr, I., & Murphy-Holahan, M. (2019). Changing attitudes toward checkout charity. International Journal of Marketing Studies, 11(4), 60-68.

Authors

• Tine Faseur, KULeuven VAT BE 0419 052 173

• Tine De Bock, KU Leuven