When Checkout Charity Gets Uncomfortable — and Maybe Even Illegal

When was the last time that you were paying for your groceries or other items, and the cashier asked, "Would you like to round up your total for charity?" Perhaps they didn't tell you which charity. Or maybe they simply asked, "Would you like to round it up?"

That's what "Sylvia" and her mother encountered at a home decor chain store that sells bedding, kitchenware and holiday goods.

"After all of our items were rung up, my mom paid in cash, and then the cashier said, 'Would you like to round it up?' Mom said, 'Sure, no worry. There is a shortage of pennies. That's fine. We don't need them.'"

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"At home, we were reviewing the receipt and saw that the last entry was a 32-cent payment to St. Jude (Children's Research Hospital). Totally unexpected! We had made a charitable donation without realizing it.

"We don't object to the donation, but we feel we were misled because we weren't informed where our money would go and therefore didn't give our consent.

"I think this is something you might look into, Mr. Beaver. How widespread a practice is this?"

They were indeed misled

Sylvia is right. They were misled, and with Sylvia on the line, I confirmed it by speaking with the on-duty manager at the store, asking her, "Do you have a charity campaign for St. Jude?"

"Yes, we do."

"Do your cashiers tell customers that 'rounding up' their total means that their change goes to St. Jude? Or do they just say, 'Would you like to round it up?'"

She refused to answer but insisted that Sylvia tell her who the cashier was. "Give me the register number on the receipt."

I repeated my question, which she still didn't answer. I took her refusal as an admission that, yes, cashiers ask customers if they want to round up their total without letting them know where their money will go.

Of course, who can forget the past few years of constantly being bombarded with "Would you like to give a dollar to XYZ organization?"

But we don't hear that much anymore, because "checkout charity" has been replaced with the "round it up" verbiage.

Perfect example of impulse giving

America is a generous nation. If you look at the Charities Aid Foundation's World Giving Index, the United States ranks near the top of countries whose citizens are among the most generous on the planet.

Now, there is giving when you know where your gift is going and you want to donate, but snookering us to give even a few cents to an unidentified cause is more than not acceptable. It is generally considered illegal to solicit charitable donations without revealing the name of the charity and the purpose for which the funds are being raised.

Both federal and state laws require transparency in charitable solicitations to protect the public from fraud.

And when it happens at the checkout counter, the customer has only seconds to decide.

In any other business or commercial setting, we would say, "Wait a minute, I have some questions."

But when people waiting behind us in line are close enough to hear our conversation with the cashier, the result is pressure — you are being pressured to give your money (i.e., make a buying decision with no time to think it over) to an organization that might not have been identified.

After asking if you'd like to donate, the cashier should say, "And your donation goes to XYZ."

But that's not always so, according to the 2025 Charity Checkout Champions Report by Engage for Good and presented by Adyen, which analyzed 92 point-of-sale (POS) fundraising campaigns that raised over $275 million in 2024. The report found that only 74% of the campaigns clearly identified the benefiting charity.

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I spoke to an executive of one of the North American companies that helps businesses collect donations for charities at checkout. He asked that he and his employer not be identified because the information he shared with me is more frank than his employer would prefer. Once I promised not to share his identity, he was quick to admit:

"We show cashiers how to seize on a customer's psychologically weak moment, when their donation could be going to a group they might not approve of and would never give their money to.

"But impulse giving is huge in the charity business, and so your very presence in the checkout line lends itself to being pressured into making a split-second decision for an altruistic reason.

"Unless full disclosure is made about the recipient of the donation, this is highly unethical, but (businesses get) away with it all the time."

Findings on impulse giving

Fifty-three percent of Americans donate impulsively at the checkout counter, according to a 2024 survey conducted by researchers Lauren Dula of Binghamton University and Ruth Hansen of the University of Wisconsin-Whitewater. They found:

• Impulse giving is often driven by social pressure, emotional appeal and the ease of the transaction.
• The donation request is embedded in a moment of financial exchange, making it feel like a small, convenient act of generosity.
• Many consumers report feeling guilty or obligated when prompted, especially in face-to-face retail settings.
• Younger customers are more likely to give impulsively than older people.

What businesses should do

The executive I spoke with offered these suggestions to help retailers that adopt checkout-charity programs do everything correctly and steer clear of trouble:

1. Name and describe the charitable organization.

• The name and purpose of the charity should be clearly displayed at the checkout
• You should verify that it is recognized by the IRS as a 501(c)(3) nonprofit

2. Provide an explanation for how customers' funds will be used.

• Include administrative or processing fees
• Break down how much goes directly to the cause

3. Ensure funds are given voluntarily and that informed consent is obtained.

• Your workers should make it clear that the donation is optional
• Customers should be told that they can decline
• Your workers should not use language that invokes pressure or guilt

The executive concluded our interview with these cautionary words for retail businesses: "Checkout charity is highly effective, and at the same time, we are hearing more and more objections to the pressure to donate. My fear is this has the potential to backfire one day."

All that said, checkout charity isn't a bad thing when it's done right. According to a Charity Watch blog, checkout donations allow charities, especially smaller ones, to raise significant amounts of money from a much larger pool of donors than they could normally reach. And because the process is part of a transaction that's already being conducted, the fundraising expenses are much lower.

So the bottom line here is that shoppers should make sure that they are aware of what they're donating to before they hand over even a small donation at the checkout. Here's what you can do if you encounter a request to round up your total:

• If the cashier isn't clear about what the money will be used for, ask.
• Don't hesitate to ask further questions about the charity. Maybe it's one you'd be happy to support.
• If you're not interested or feel there isn't enough information available, simply and politely say, "No, thank you" or "Not today."

Dennis Beaver practices law in Bakersfield, Calif., and welcomes comments and questions from readers, which may be faxed to (661) 323-7993, or e-mailed to Lagombeaver1@gmail.com. And be sure to visit dennisbeaver.com.

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