The Power of a Penny! Interview with Alison Hutchinson, CEO, Pennies – The Digital Charity Box

At this time of year, it’s good to be reminded of the pleasure and power of giving, and I'm proud to be a trustee for a rather remarkable charity which does just that. Pennies is a digital charity box which makes it effortless for you to round up your purchases when you pay by card or contactless payment device, donating the spare change to a good cause. Raising c. ￡15 million from 60 million small donations since its conception in 2010, the venture has been a resounding success, proving that human values can triumph in the digital age.

Much of the success of the project is thanks to the commitment and tenacity of the charity’s CEO, Alison Hutchinson, whose considerable efforts were recognised with a CBE for services to the Economy and Charities in 2016. I asked Alison to share how Pennies got started and the plans the charity has for the future.  

How did the idea for Pennies first come about, and how did you get it off the ground?

It really was one of those round-the-kitchen-table moments. Back in 2008, during the financial crisis when personal spending was tighter, a few people had the idea of creating a way to give back more easily. After the idea emerged, they couldn’t believe no one else was doing it, and felt it just had to be made a reality. I personally stumbled across the role after 30 years in senior positions at corporates including IBM and Barclays. I’d learnt from my family business that whatever you do, you give a bit back, so it was a project that really resonated, and I felt it deserved the best chance possible. I went in expecting to give it three months of my time; it’s been ten years!

Turning the idea into a reality wasn’t quite so straightforward as the technology had to be built from scratch. It was really important to us that the process of giving should be exactly as anonymous as dropping pennies into a charity box, so there had to be no data trail before or after the donor rounds up their transaction. This turned out to be ahead of the GDPR curve, and I think has played a big part in making Pennies popular with the consumer.

The whole concept works on the premise that a lot of small acts of goodwill add up, so I knew we had to think big. We started with significant research with UK consumers to ensure we fully understood what was important to them. We then began a consultative process to engage retailers with the idea, and also asked a few key brands to sit on the board to advise us. The initial trial was meant to be just 3 months with Domino’s Pizza but their consumers loved it so much they never looked back and they gave us an immediate national reach. Zizzi restaurants and Travelodge came on board soon after, and we were off. The Entertainer was the first in-store retailer – they used to raise ￡2k in a year from cash donation boxes - but with Pennies, they achieved that in their first week (and as we head towards Christmas 2018 they are on track for raising nearly ￡100k in the six days before Christmas Day)!

Why do you think Pennies has been such a great success?

First and foremost, we made it easy and anonymous for the consumer to donate, so whether you’re shopping in store, online or through an app, all you have to do is make a simple yes or no choice, and there’s no further commitment.

Then we’ve also made it really very straightforward for retailers to integrate Pennies into their existing payment systems. Having some market leaders on board from the beginning definitely increased retailer confidence in Pennies, and it’s a great way for them to support and shout about the charities close to their heart, and that resonates with their customers.

But I think it’s mainly been a question of the right idea at the right time. Statistics from research we recently commissioned report that 40% of consumers say they won’t buy from a retailer that isn’t considered ethically-minded or socially responsible – and giving just a little something back quite simply makes you feel good. The ease of the technology helps consumers get over the very real challenge of not carrying cash, and it’s also been proven that people are likely to give more with digital gifting than they do in coins.

What’s the vision now for Pennies?

The next phase for us involves working with all future payments as they develop. We are already an approved charity with Apple Pay but with the explosion of many new payments we remain focused on ensuring consumers can donate across any retailer channel using any payment they choose. We’re also looking to bring Pennies to self-service checkouts and kiosks; it’s exciting times!

New retailers are constantly approaching Pennies to jump on board. And we’re also continually talking with charities to see if we can support them with their retail partners. It’s been brilliant to work with so many brilliant causes – we’ve supported over 400 so far – and joining up with a juggernaut like Children in Need means the funds are reaching hundreds of smaller charities working with many youngsters that need support in their own communities, that might otherwise have fallen through the cracks. For me, personally, it’s the best job in the UK right now, so I’m in it for the long haul. 

Please note the value of investments and any income from them can fall and you may get back less than you invested. For information only and not to be considered financial advice. If you want help with your investment choices, we suggest you take financial advice, such as from a Sanlam financial adviser.