Roundup donation programs have exploded in popularity —, with point of sale (POS) donations nearly doubling from $389 million to $749 million in the last decade.
These programs seem like a win-win: customers feel good about giving, charities receive much-needed funds, and businesses build goodwill.
However, for small businesses like nonprofit thrift stores, the real question is: are roundup donations profitable? The answer isn’t simple, but when implemented effectively, these programs bring meaningful rewards for your store.
What Makes Roundup Donations So Popular?
From coffee shops to thrift stores, all kinds of businesses have embraced roundup donation programs. But what makes this approach so appealing?
It’s the ideal fusion of simplicity, small actions, and powerful impact.
How Roundup Donations Work and Why They’re Effective
At checkout, customers are asked to round up their total to the nearest dollar. For example, $19.35 becomes $20, with the extra $0.65 donated to the business’s charity.
This small act taps into micro-giving psychology, where consumers are likely to contribute when the effort is minimal and the financial impact feels negligible.
A 2021 study confirmed that these programs appeal to shoppers, making them an excellent fit for nonprofit thrift stores aiming to support charitable causes.
The Profitability Question: Breaking It Down
Micro-donations may be effective on paper, but are roundup donations profitable?
Before implementing a program, evaluating its potential impact on your nonprofit store’s revenue and business growth is essential.
Let’s look at three ways a roundup donation program can affect your bottom line.
Drive Revenue Through Loyalty and Spending
Roundup programs encourage customers to give, cultivate loyalty, and increase spending. Shoppers are more likely to support businesses aligned with their values, with one study showing that 87% of customers prefer companies supporting a cause.
These programs can also subtly motivate customers to add extra items to their carts to round up their totals, increasing transaction amounts over time — especially in stores with high foot traffic.
Build Trust and Foster Community Connections
Supporting a cause builds credibility and trust, as 62% of consumers prefer businesses that take a stand on important issues.
This trust leads to stronger customer relationships and word-of-mouth recommendations, helping your store attract new shoppers while fostering a sense of community.
Keep Costs Low and Simplify the Checkout Process
Some POS systems, like ThriftCart, already include roundup features or offer them as a low-cost add-on.
Training staff to ask, “Would you like to donate at checkout?” takes minimal time and resources.
Compared to other marketing efforts like print ads and SEO optimization, this is a budget-friendly option for cost-conscious thrift or restores.
Is a Roundup Program Right for Your Business?
A roundup donation program isn’t the right fit for every business, so evaluating your store’s needs is crucial.
These programs are effective for businesses like thrift stores with frequent, small transactions. Customers are more likely to round up since the added amount feels negligible on low-cost purchases.
Beyond Profits: The Ripple Effects
These donation initiatives aren’t just about increasing your store’s revenue; they can also help you build stronger customer relationships.
But success depends on your ability to craft a share a powerful story that highlights the importance of your cause.
Choose a cause that resonates with your customers’ unique interests — such as partnering with a local shelter or food bank. Aligning the cause with your mission to provide affordable goods while giving back strengthens emotional connections and encourages customers to contribute.
Celebrate your program’s wins by using social media and email campaigns to share fundraising updates and highlight the impact of your customers’ donations.
Support Your Thrift Store With a Roundup Donation Program
So, are roundup donations profitable? They can bring value — but only with a strategic approach. They’re not just spare change; they’re an opportunity to build customer relationships and enhance your brand reputation.
If you’re considering implementing a roundup program, thrift store software that simplifies the process for customers is essential.
ThriftCart offers a built-in roundup donation feature that integrates with your POS system. Once activated, you can manage donations effortlessly from your cash register interface.
Book a demo with ThriftCart today to learn how roundup donations can transform your business and community.
