Coin Up

Better Giving Studio identified this concept through the 2020 Reimagine Charitable Giving Challenge, an open innovation component of the program which sourced nearly 400 digital giving products and concepts. The concept summary below is inspired by and derived from the Challenge entry submitted to the Challenge. 

Why BGS is Excited

• The “set it and forget it” functionality makes giving easy, while monthly summaries provide donors with data to help them understand where their recurring donations are going and how they add up
• The tool puts the power of decision-making in the hands of the donor. Typically, rounding up is a preset option determined by another entity (ie. payment processors or stores). Coin Up allows donors to tailor rounding up according to their preferences around causes and nonprofits
• Engaging new donors via microdonations might encourage larger donations down the line

The Opportunity

Many donors are familiar with the traditional “spare change in a jar” model for charities. Salvation Army alone collected nearly USD 150 Million in spare change in its Red Kettle campaign in 2019. March of Dimes and UNICEF also rely on donated spare change for millions of dollars in fundraising every year. As society becomes cashless, nonprofits are at risk of losing this funding source. And as more internet traffic shifts to mobile, nonprofits need to shift their fundraising strategies accordingly, or risk losing donors.

The Concept

Coin Up seeks to fill this gap by providing a mobile solution allowing nonprofits to tap into vast numbers of supporters who have made small donations or expressed interest in their cause. Coin Up encourages users of all socio-economic levels to make incremental, recurring donations to the causes they care about, resulting in consistent monthly revenue for nonprofits. Users can round up all of their purchases using a single mobile application that enables them to give to the causes they care about, set their own monthly limit, and get credit for their donations.

Once users download the app and create an account, they can select a charity by name, cause, or zip code. Next, they select a monthly limit and link their debit or credit card in a secure, encrypted environment. Once confirmed, donors use their linked credit/debit card as usual for everyday purchases such as coffee, groceries, or gas.

Within the app, each card transaction is rounded up to the next dollar. At the end of each month, users are automatically charged for their total “spare change,” up to their designated limit, and funds are sent directly to the nonprofit’s bank account less a 15% fee. Donors receive a monthly “thank you” reflecting the specific impact they made for their charity, along with an annual tax donation receipt for 100% of their giving. Users have the option to set-up donations in the form of fixed monthly payments or one-time donations.

Nonprofits register with Coin Up for free. Each nonprofit receives vetting to ensure they meet minimum qualifications. Coin Up target users are 25-55, living in major cities; it is strongest among the 35-45 age group, especially among young professionals, busy parents with young children, and nonprofit board members, staff, and volunteers.