HSBC bank introduces donation by cash machine
Howard Lake | 6 November 2005 | News
HSBC is encouraging its customers and those of sister company First Direct to donate to charity when they use a cash machine, or ATM. Customers can donate from £1 to £50 using the options provided, or they can choose to give a higher sum of their choosing, technically up to £999,999.
The ability to make donations at consumer outlets such as supermarket checkouts and bank’s cash machines has long been touted as a valuable source of income for charities. HSBC’s introduction of this system follows a successful trial in Mexico, according to the Guardian, where customers have made around 710,000 donations a month.
HSBC’s service has been launched with only one beneficiary charity, BBC Children in Need. The bank does plan to extend the number of charities that customers can choose to give to by the end of 2005.
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HSBC’s chief executive, Michael Geoghegan, said that “almost one in five people say they would donate more if they could through ATMs” according to HSBC research.
The giving system is straightforward: the option of “charity donation” is first on the list on-screen in the top left hand position. Customers are given a number of prompted levels of giving, right down to a minimum of £1. At each stage the customer gets to confirm that they do wish to go ahead with the donation.
However, the system has a number of gaps which need addressing.
First, there is no mention on screen of the beneficiary charity’s registration number, a legal requirement whenever a request is made for a financial donation. Nor does the number appear on the printed receipt that is generated.
Secondly, the bank does not ask the customer to give by Gift Aid, thereby losing out on valuable additional income for the charity. Worse, the printed receipt does not include text encouraging customers to contact BBC Children in Need and make a Gift Aid declaration.
Thirdly, the printed receipt does not include any information about the charity – no web link, telephone number or details of further ways of showing support.
The innovation has great potential, but needs overhauling if it is to benefit charities effectively.
About Howard Lake
Howard Lake is consultant editor of UK Fundraising. He founded the site in 1994 and successfully sold it in 2022. As director of Giving X Ltd he is exploring growing giving on a massive scale.
He is the founder of Fundraising Camp and co-founder of GoodJobs.