As a longtime supporter of community organizations such as The Salvation Army, I was interested to read that the institution is planning to go digital in its fundraising strategies—after all, one of the strongest images associated with The Salvation Army is bell ringers standing in front of department stores and major retail outlets. These volunteers also set up distinctive red kettles, into which festive shoppers are encouraged to drop cash donations.
In early November, The Salvation Army announced that it is testing out a new mobile payment device, developed by the start-up venture Square, Inc., and built into phones donated by Sprint. The handheld device allows credit cards to be quickly scanned, with a 2.75 percent service fee added to all donations. A Salvation Army spokesperson speaking to The New York Times attributed the need for this technology to the fact that many these days simply don’t carry cash when holiday shopping. The mobile device was implemented earlier this year by a Girl Scout troop in Silicon Valley. The troop was selling boxes of cookies at Facebook’s headquarters, and one of the troop members’ fathers, who works for the company, noticed that his colleagues simply did not carry cash. Equipped with a Square device, however, the troop sold some 400 boxes.
During the 2011 holiday season, The Salvation Army is testing digital donation devices in ten locations in the cities of Dallas, New York, Chicago, and San Francisco. Interestingly, this is not the first time that the nonprofit has allowed credit card payments during its Red Kettle Campaign. In 2008, The Salvation Army introduced credit card processing terminals. However, the amount these stations collected was small, just $60 million in 2009, compared to nearly $150 million raised through traditional cash donations. The Square handheld devices are touted as being effortless and intuitive, and The Salvation Army hopes to expand its fundraising capacities significantly through the technology.
Whether successful this year or not, it is likely only a matter of time before swipe-and-go donations become commonplace. During the upcoming holiday season, I encourage shoppers to support The Salvation Army, either through a clink of the coins or a swipe of the card.
About the Author:
Judge Pete Lowry has nearly four decades of experience in the Austin, Texas, community, as a judge and lawyer handling complex litigation and civil law issues. Judge Lowry contributes to several community organizations in addition the Salvation Army, including Hospice Austin and Partners in Health.