Pennies Impact Report 2017/18

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Impact Report 2017/18


Pennies Impact Report 2017/18 Lemur at Yorkshire Wildlife Park, protected as

part of the Yorkshire Wildlife Park Foundation’s conservation efforts PHOTO: George Blonsky / Pennies

Contents

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Welcome from our Chief Executive

How Pennies works

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The Pennies mission and movement Our charitable activities

Making pennies count

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Our spending and grant-making The difference a penny can make

Realising our impact

8 10

Overview of impact in 2017/18 Focus on: innovation for good

Looking ahead

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Our plans for 2019 A letter from our Chair

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Special thanks to our funders Cover image: Women take part in a Nordic Walking session, provided by the charity Maggie’s PHOTO: George Blonsky / Pennies


Pennies Impact Report 2017/18

Welcome to the

Pennies Impact Report 2017/18 We are undeniably now living in a ‘less cash’ society: debit cards are the most frequently used payment method in the UK1, and card usage (specifically contactless transactions) continues to grow at a rapid pace as more retailers invest in payment technology to facilitate customer choice. At Pennies we’ve always embraced technology to meet the changing habits of consumers and the rise of digital. And now, post GDPR, Pennies is perfectly placed – and always has been – to deliver data-free, anonymous and easy giving options. With that in mind, I’m very pleased to bring you Pennies’ 2017/18 Impact Report, our latest publication bringing you a clear view of the last 18 months of innovation and impact. In this time, we have broadened the availability and functionality of the digital charity box, and deepened the impact we’re making for charities, consumers and businesses. This year’s report focuses on how Pennies is working to make real change happen. This includes key evolution in our technology offerings, having secured approved compatibility with Apple Pay and launching a growing number of contactless solutions.

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Read our in-depth case studies on page 10 to discover the impact these developments have had for Teenage Cancer Trust and The Entertainer’s children’s hospital charities; just a handful of the many charities we support. You'll also find out how we've achieved our first football club implementations and the difference Pennies is making to their local community foundations. The exciting part is this is just the tip of the iceberg! We’re working hard to ensure Pennies is a truly omnichannel experience – in-store, online, in app, increasingly contactless and ultimately where customers make non-card payments too. And with this sustained and efficient form of income for charities, comes a bounty of ways retailers can thank their customers. With Pennies, the UK public can give to charity with confidence, knowing that their digital pennies join with millions of others and add up to make a profound difference. After all, we want giving to make everyone feel good.

Alison Hutchinson CBE Chief Executive August 2018

UK Payment Markets Summary, April 2018

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Pennies Impact Report 2017/18

How Pennies works Pennies exists to help charities make a greater impact. We do this by promoting charitable giving, in particular, championing the act of feel-good giving through affordable and convenient digital micro-donations, and by facilitating digital giving through our own digital charity box. We aim to improve efficiency and effectiveness within the UK charity sector and maximise the potential for all charities to deliver their own aims and objectives.

The Pennies movement We are the digital charity box, but we’re also a movement of like-minded individuals and organisations that work to develop ideas, deliver solutions and drive innovation in giving. Our solution offers people a chance to make giving part of their daily life, in a way that is sustainable and accessible. In turn, it provides a valuable additional source of funding for charities allowing them to enhance their impact in the communities they serve.

Retailers

Foundations & trusts

Business leaders

Payments & technology

Charities

Fintech specialists

Trade bodies

Consumers

The digital charity box ecosystem

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Technology is enabled We work with payments and technology companies to develop the Pennies donation option across different retail and payments channels, creating solutions that work for each customer journey.

Customers give Just as they would drop loose change in a collection tin, customers can make a small, one-touch donation when paying by card or mobile wallet with a partner retailer – without handing over any personal data.

Retailers join in On the high-street, online or in-app, we work with retailers to implement the digital charity box and give customers the option to donate to nominated charity partners when they make their payment.

Charities benefit We track the donation and never the donor, from collection at the point of sale to granting the money raised to the retailer’s nominated charities. Each charity is promoted at the point of sale too.


Pennies Impact Report 2017/18

What we do

Our charitable activities As a UK registered charity, our charitable activities are at the heart of what we do. From making giving more accessible to raising valuable new funds through our digital charity box, read more about how we deliver our mission below.

Raise millions for charity We have created the digital charity box, a simple and intuitive upgrade of the traditional charity collection tin. Day to day, we keep it running: implementing Pennies with new retailers, verifying and collecting donations, and granting those funds to charities. Millions of pounds are now donated through the digital charity box each year, supporting hundreds of charities.

Support our partner organisations We monitor our own donation data for trends and insights, track research and behaviours in the retail, payments and charity sectors, and respond to changing consumer preferences too. We use our expertise to maximise the impact of each partnership, finding ways to boost donation levels and communicating to customers how donations are making a difference.

Unlock technology for good The payments landscape is changing faster than ever. We work closely with all major payments and technology providers, fintech leaders and industry bodies to make sure Pennies is evolving too, delivering new solutions that respond to retailer and customer demand. By staying in touch with current innovations, we keep unlocking tech for the benefit of more charities.

Encourage giving and promote the sector Pennies uniquely brings together voices and leaders from across industries and unites them behind a common goal. We are fast becoming a prominent voice encouraging efficient, sustainable and innovative giving, ensuring charities continue to thrive in a fast-paced and fast-changing digital world, and that the public still have affordable ways to give to charity.

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Pennies Impact Report 2017/18

Making pennies count We seek to have a tangible impact through our charitable activities, and we’re proud to make a difference to causes and communities in the UK, the Republic of Ireland and further afield too. Importantly, we’re also making a difference for businesses and consumers, building a collaborative way for organisations and individuals to do good and feel good at the same time. We recognise the importance of operating as effectively as possible to maximise the impact that can be achieved through our work, for the benefit of individual charities and the wider sector.

Our spending

tivities

99 %

Ch

n ce 1 % rna ve Go

We hold ourselves to this same standard. In 2017, 99%1 of our spending was used for direct charitable activities, investing our income into developing the digital charity box and growing the feel-good giving movement, helping us support a greater number of causes in the years to come.

£3 to other charities for every £1 we were spending. In 2017, we increased this to £3.70 of social impact for every £1 spent.

ble ac ita r a

At the core of the Pennies mission is the aim to help make the charity sector more efficient, innovating on behalf of the sector and freeing up charities to spend more of their time and resources on their vital work.

Importantly, we aim to drive the greatest possible impact from every penny we spend. In 2016, we were granting just over

Granting funds A crucial part of our work involves granting the funds raised through the digital charity box. We grant these quickly, ensuring the impact of donations

£12.9m

38%

£3.70

granted to charity since launch in 2010

of the total grants to date made in last 18 months

granted to other charities for every £1 spent

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can be felt as soon as possible. Since launch, we have granted £12.9million to charity2, almost £5million of that in the past 18 months alone3.

Pennies’ Annual Report and Financial Statements 2017, available from the Charity Commission for England and Wales 2 Figure correct as of end of June 2018 3 18 months from January 2017 to June 2018


Pennies Impact Report 2017/18

What we do

The difference a penny can make Pennies’ progress has a direct impact on how much money can be raised, and how many charities can benefit. In 2017, more customers than ever made a donation though Pennies, safe in the knowledge that the digital charity box is a secure and effective way to give their small change a big purpose. The cumulative power of these donations is significant.

A lunchtime of donations made by diners at Fuller’s pubs

2,000 pennies

could pay for a whole day of meals for a family staying at a Shooting Star Chase children’s hospice

60 donations from holidaymakers booking with Virgin Holidays online

3,000 pennies

could help Dreams Come True provide a special day out for a child or young person with a life-limiting illness

One day of donations from customers at MRH roadside retail sites

250,000 pennies

could fund a life-saving air ambulance mission by one of 20 regional air ambulance charities in the UK

One week of donations from Medivet clients paying their vet bills

330,000 pennies

helps fund training, support vehicles and accommodation for a patrol dog like Ella, who will protect South Africa’s rhino population from poachers as part of the Wilderness Foundation's Forever Wild initiative 7


Pennies Impact Report 2017/18

Realising our impact The past 18 months has seen us make significant progress delivering change through each of our charitable activities. We’ve made important steps to expand our technology offerings, formed new partnerships to help boost the profile of micro-giving amongst businesses and consumers, and seen the pace of donations grow faster than at any time in our history. We’ve broken down some of our key successes, evidencing how our work is growing our impact.

Raising millions As of July 2018, £13.7million had been raised through the digital charity box since our launch in November 2010. In the last 18 months alone more than 20million individual donations have been made through Pennies – almost as much as the first five years of donations

Developing tech In 2017 Pennies achieved significant progress developing new solutions and creating more opportunities for customers to donate, in response to public demand for more flexible ways to shop and pay. These have included launching several contactless Pennies solutions, allowing customers to donate with a single press of the button before they tap to pay. With contactless now accounting for 15% of

Encouraging giving Through our partnerships with key organisations we’ve been able to extend our reach, and our message. As Vendorcom’s Charity of the Year for 2018, we’re using our position at the heart of the European Payments Community to encourage collaborative, forwardfacing CSR – using payments technology to engage consumers and drive social change.

combined. Hand in hand with this growth in donations has been growth in the number of charities we are supporting. Since the end of 2016 there has been a 50% increase in the number of charities we’ve supported, with a greater breadth of causes now receiving funds from Pennies, helping them effect real change.

all payments in the UK1, developing tapand-go giving has been a key priority. We’ve also now made Pennies Apple Pay compatible, widening the potential for the micro-donation movement in the UK. By working to include Pennies in a growing number of mobile wallets and digital payments solutions, we’ve opened up the opportunity to donate to more consumers, directly benefiting causes and communities at home and abroad.

Pennies has also been Official Charity Partner of the Retail and Business Technology Expo (RBTE) in 2017 and 2018, bringing the concept of feel-good giving to a wider audience and endorsing effective digital fundraising solutions that work for changing retail environments. In addition, Pennies continues to be a regular speaker at a number of charity, retail and payments events, championing the micro-donation movement. 1

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UK Payment Markets Summary, April 2018


Pennies Impact Report 2017/18

What we do

Our impact in 2017/18 £12m

50%

£10m

£8m

increase

in the total number of charities to have benefited from Pennies

£6m

£4m

17 20

16 20

15 20

14 20

13 20

12 20

20

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£2m

£3m granted in 2017 and almost £2million granted in the first six months of 2018

2016 Someone now donates to charity using Pennies

every

two seconds

244

charities supported

2018

367 charities

supported

(every 3 seconds in 2016)

30%

more retailers

4,601

store-fronts offering Pennies

offering Pennies through digital channels, including e-commerce, m-commerce and apps

45% increase in the number of physical stores where customers can donate through the digital charity box

All figures correct as of July 2018, compared with the figures at the end of 2016

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Pennies Impact Report 2017/18

Focus on: innovation for good Sometimes an unsung part of our work is our innovation in technology. In the last 18 months, with the help of our partners, we were able to increase the impact for a range of charities through some key developments. Here are ways that three retailers have helped deliver more front-line work to charities’ users and beneficiaries.

Expanding into Apple Pay: Domino’s and Teenage Cancer Trust

Fittingly, Pennies’ first live partner, Domino’s, was the first to adopt and has seen donations via iOS apps almost double in the last year, indicating that its customers in Great Britain have been driven to donate by the inclusion of Apple Pay, for the benefit

In Autumn 2017 Pennies began accepting in-app donations with Apple Pay. The move gave customers the opportunity to donate using the digital charity box and Apple Pay for the first time, matching the fastest growing mobile wallet with the fastest expanding UK fintech charity.

of charity partner Teenage Cancer Trust. For Domino’s, adopting the Pennies and Apple Pay solution was a huge value-add for customers too, opening up another simple way for people to give to charity. The continued support from customer donations over the past 18 months has enabled Teenage Cancer Trust to protect and grow the services they deliver for young people with cancer.

Money raised through Pennies has helped fund Teenage Cancer Trust nurses, who provide specialist support to young people with cancer before, during and after their treatment. It’s helped to cover maintenance costs across 28 outstanding specialist Teenage Cancer Trust units in every major hospital across the UK, as well as supporting its Youth Support Coordinators: a vital role in helping to balance the social impact that cancer can have on a young person.

Laura Zabel, Teenage Cancer Trust

Rise of omnichannel giving: Fulham FC Foundation

shopping at the ground or online, fans can choose to add a donation to all payments made by card or digital wallet, including contactless transactions.

Through our close collaboration, payments providers

Even better are the results. In the first fortnight

Optomany and Retail & Sports Systems are now able

Fulham FC saw customer donations on 1 in 4 of all

to integrate Pennies for a number of their clients,

purchases through its physical and online stores.

including major football clubs like Fulham and Cardiff City, who both launched Pennies in 2017.

There is no impact on the payment experience for card users and the ‘two-tap’ contactless option is

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Importantly, this partnership has seen Pennies’

proving intuitive. Both clubs are thrilled with how

first simultaneous omnichannel offering. Whether

quick and simple the process has been.


Pennies Impact Report 2017/18

Going contactless: The Entertainer and The Grand Appeal Long-term Pennies technology partner Worldpay has helped enable millions of customer donations at The Entertainer, and developed Pennies’ first ever contactless giving option for the toy retailer too. Since introducing this option last year, The Entertainer has seen a dramatic increase in donations, raising £64,000 in the six days prior to Christmas 2017 alone – double the amount raised in the same period the year before. The evolution of The Entertainer’s in-store Pennies offering has not only meant more chances to ‘feelgood give’ for customers, but has directly increased the impact for their charity partners. The Grand Appeal, based at Bristol Children’s Hospital is one of

neurological condition called Posterior Fossa Syndrome following the removal of a tumour. This meant Seb lost the ability to walk, talk or even swallow but play therapy, and specifically sensory play equipment, played a huge role in his recovery.

We were overjoyed to hear that the surgery to remove his tumour was successful but when it became clear Seb had Posterior Fossa Syndrome it was incredibly hard for me and his dad. It’s obviously a devastating situation and we felt so helpless. The physio, arts, play and neuro-

the charity partners to have benefited.

rehabilitation teams... feel like our family here,

Donations continue to fund roles and services

Sensory Play Practitioner, Seb has made incredible

such as a Sensory Play Practitioner, which recently

progress.

helped three-year-old Seb, who developed a severe

Abby, Seb’s mum

and with the help of Marius, the Grand Appeal

For Fulham FC Foundation, the platform has formed an integral part of their Official Charity Matchday fundraising. These funds have supported their aim of building better lives through sport, through their Down’s Syndrome, Autism and pan-disability programmes.

Pennies has given us a powerful new way to raise money for the foundation, helping to empower people in our local communities.

Amy O’Brien, Fulham FC Foundation

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Pennies Impact Report 2017/18

Our plans for 2019 In our first year, a little over 1 million donations were made through Pennies. As of June 2018, less than 8 years since launch, we were enabling 1 million donations every 3 weeks. As we look ahead to our plans for the next year of impact, and beyond, we first want to say thank you to all those partners across the Pennies movement − from retail, hospitality, payments, financial services to funders and consumers − who have embraced our mission and are helping us make feel-good giving a reality. We hope you’ll join us in our next chapter too.

Keep unlocking new technologies The pace of growth in paytech and fintech is the fastest it’s ever been. Pennies keeps in step with the industry, developing how the digital charity box operates to ensure customers can still give easily, even as the pace of change accelerates. Over the coming months, we will continue to focus on growing the opportunities to donate, working with partners to explore

more ways to give through Pennies – whether that’s paying at table, at kiosks, or as part of regular payments. Our recent research shows that 50% of the UK public now regularly1 leave the house without cash – and they are adopting new payment methods rapidly. Never has a way to capture digital micro-donations, easily and securely, been more relevant.

Open Pennies to new audiences While someone now donates via Pennies every 2 seconds, there are still 525 card transactions made every second in the UK2. We believe there is room for the digital charity box wherever digital payments are made, with Pennies now proven in a wide range of sectors. Consumers also want to see ethical behaviour from the businesses they spend with. Not only do 81% of people think

companies have a responsibility to do social good, but two fifths have explicitly stated they think businesses should be offering them ways to donate to charity3. We will work to open the option to donate to more consumers by forging new partnerships and broadening the number of retail environments where Pennies is offered – from booking a holiday to doing your weekly shop.

Drive the movement even further We believe the act of micro-giving is a powerful thing. It not only allows people to do good, it allows them to feel good too − a way to be part of a movement where you can give a little but change a lot. If every cardholder in the UK donated just 30p a month through Pennies, we would

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raise £190million a year for charity4. With your continued support in 2019, we will seek new opportunities to promote accessible, affordable and effective giving, building on the impact that micro-donations are already making for hundreds of charities, from local causes to those working all over the world.


Pennies Impact Report 2017/18

Looking ahead

A letter from our Chair It’s never a dull moment to be the Chairman of a charity that shows no satiation in its innovation and desire for growth. The wonderful thing is this isn’t for shareholders or profit but for the benefit of society.

Retail and hospitality are responding to new trends including a growth trajectory in e-commerce and m-commerce, and we seem to hear almost weekly of another high street stalwart facing difficulty.

You will have read of breakthroughs in omnichannel giving, and on the horizon are moves into kiosks and self-service, greater contactless options and even open banking – all to deliver the digital charity box to as many customers as we can.

Wherever there is an opportunity to shop and spend, we are committed to helping you support a charity at the same time – and feel good about doing so.

As a charity designed to encourage the habit of giving at a grassroots level, we are all excited to see reflected in our recent research, a growth in our awareness and clear increase in the propensity to give ‘the Pennies way’. However, there is no denying that the retail and hospitality environments are experiencing challenges. Consumer behaviour has changed, and shoppers are demanding much more choice in terms of how, when and where they shop.

But we are confident that as these sectors adapt and respond, investing in their physical store experiences and online presence for example, Pennies will be there evolving alongside them and enhancing the customer experience.

Robert Leitão Chair of Trustees August 2018

As sectors adapt and respond, Pennies will be there evolving alongside them and enhancing the customer experience.

Independent research conducted on behalf of Pennies by Markettiers 4DC polling 2020 adults in the UK, April 2018 Based on UK Finance Card Expenditure Statistics, October 2017 Based on UK Payment Markets Summary, April 2018

1&3 2 4

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Pennies Impact Report 2017/18

Special thanks

to our funders We’d like to extend our thanks to each and every individual and organisation that has funded Pennies in our journey so far. Like any charity, Pennies needs the support of its core funders, especially in its early years. In particular, we’re incredibly grateful for the support of a number of multi-year funders and major individual donors who’ve provided us with a bedrock from which to grow the Pennies movement and who continue to support us into our exciting future, including: Oak Foundation Pears Foundation The Rank Foundation Independent Franchise Partners This funding from foundations, trusts and individuals helps us reach more partners and realise our charitable mission. We also receive a small percentage of each donation made to the digital charity box allowing us to maximise the immediacy of our social impact.

Investment from foundations, trusts and individuals

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We create and grow an efficient, sustainable source of funding for hundreds of charities and encourage regular, feel-good giving

Small percentage of each donation made to the digital charity box


Pennies Impact Report 2017/18

London’s Air Ambulance crew on the helipad at The Royal London Hospital, Whitechapel PHOTO: George Blonsky / Pennies

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Pennies works because it’s profoundly collaborative, appreciative of the need for simplicity for retailers and transparency for consumers. The reassurance of anonymous cashless giving has clearly been a key driver in its growing adoption across the retail industry. I’m pleased to see the digital charity box becoming yet another soughtafter solution for more and more retailers wishing to give back and invest in the UK charities they want to support. Helen Dickinson Chief Executive, British Retail Consortium

UK Finance is fully supportive of financial sector innovation to help make a difference to UK charities. Pennies, the digital charity box, is a great example of a fintech charity giving individuals the opportunity to make an electronic donation without disrupting the systems which facilitate customers’ payments, and independent of charitable cause. Crucially, Pennies does not hold any personal data, thereby enabling consumers to give to charities with ease and confidence. Bob Wigley Chair, UK Finance

Get involved Contact us to find out how you can become a part of the Pennies movement:

email info@pennies.org.uk | call 020 7600 9286 | visit pennies.org.uk | follow @pennies_orguk

© 2018 The Pennies Foundation. Registered charity in England and Wales (charity no. 1122489) and the Republic of Ireland (charity no. 20106331).