WO2004034292A1

WO2004034292A1 - Making financial contributions

Info

Publication number: WO2004034292A1
Application number: PCT/AU2003/001340
Authority: WO
Inventors: Mario Ragusa; Nathan Cooper
Original assignee: Mario Ragusa; Nathan Cooper
Priority date: 2002-10-10
Filing date: 2003-10-10
Publication date: 2004-04-22
Also published as: AU2002951985A0

Abstract

A financial contribution is made to a designated charity fund using electronic transaction apparatus. The electronic transaction apparatus is used to read a designated charity fund identification device which has stored on it a designated charity fund identifier which identifies the designated charity fund to which the financial contribution is made. The amount of the financial contribution is calculated according to a contribution rule which is either stored in the electronic transaction apparatus or stored on the designated charity fund identification device or entered into the electronic transaction apparatus. The financial contribution is acquired the from a participant who is making the financial contribution and the designated charity fund is automatically credited with the amount of the financial contribution in an electronic financial transaction, directly into a designated charity fund account.

Description

MAKING FINANCIAL CONTRIBUTIONS

Field of the Invention

This invention relates to making financial contributions. It relates particularly but not exclusively to an easy method of making small regular financial contributions to a designated charity fund using a designated charity fund identifier such as a banking card or smartcard.

Background to the Invention Fundraising has provided a valuable source of income for many organisations, particularly non-profit and charity organisations. As more organisations have become almost wholly reliant on funds which become available to them as a result of voluntary contributions and donations, fundraising has developed into a highly organised and competitive industry. It is also becoming increasingly regulated by the government and monitored by consumer organisations who have been alerted to dishonest and unscrupulous behaviour by some fundraisers.

There are many different types of fundraising, including collecting donations, selling or auctioning donated goods and/or services, selling raffle tickets, organising social events and so on. However, these traditional fundraising activities are costly to organise, both in terms of the financial input required and the time and effort which must be invested to execute a successful fundraising event.

Many organisations are reliant on the donations and good will of members of the public and loyal supporters. Unfortunately, the more frequently people are approached for donations and financial sponsorship, the less willing to provide financial support they often become, particularly when providing financial support yields no tangible benefit in return. This is especially true for commercial and corporate sponsors who are unable to anticipate a direct or indirect benefit from their support such as an increase in customer base or an element of "free" promotion.

In many cases, corporate sponsorship may establish a supportive alliance that is beneficial for both the corporation and the organisation being sponsored. Such arrangements are often perceived by the public as an endorsement of the non-commercial entity involved and often result in further donations being made by patrons of the corporation or commercial entity. However, in many cases where a patron of say, a bank or department store wishes to make a donation to an organisation which is supported by that corporation the necessary collection boxes or collectors may not be available at that location at that time. Because it is not convenient to seek out the organisation and make a donation directly, the impulse to donate money often passes before the patron leaves the commercial premises, without the organisation benefiting from the patron's intended goodwill. Cash and cheque transactions are increasingly being replaced by electronic transactions, with the result that members of the public tend to use older forms of payment such as cash and cheques less frequently. Most charities and organisations which rely on fund raising rely primarily on income in the nature of cash and cheques, whether through collection plates, collection tins or mailed donations. Accordingly, it is likely that the income of such organisations will diminish in the future as a result of the move towards a cashless society.

Summary of the Invention According to a first aspect of the invention, there is provided a method of using electronic transaction apparatus to make a financial contribution to a designated charity fund. The electronic transaction apparatus is used to read a designated charity fund identification device. The designated charity fund identification device has a designated charity fund identifier stored on it which identifies the designated charity fund to which the financial contribution is made. The amount of the financial contribution is calculated according to a contribution rule, which may be stored in the electronic transaction apparatus, or stored on the designated charity fund identification device, or entered into the electronic transaction apparatus. The financial contribution is then acquired from a participant who makes the financial contribution. Finally, the designated charity fund is automatically credited with the amount of the financial contribution in an electronic financial transaction directly into a designated charity fund account.

Preferably, the participant first makes a purchase at a purchase price, and the contribution rule includes an instruction to round the purchase price up to a particular amount such as a whole dollar value, and the amount of the financial contribution is the particular amount less the purchase price.

Preferably, the financial contribution is acquired from the participant by obtaining an account identifier which identifies a financial account from which the financial contribution will be made. The financial account is then automatically debited by the amount of the financial contribution in an electronic financial transaction.

The financial contribution may be made when making payment for a good or service. In such a case the financial account is automatically debited by the amount of the financial contribution in addition to the amount of the payment.

The designated charity fund identification device may be provided to the participant by an organisation which defines the contribution rule. Alternatively, the participant may define the contribution rule. The step of reading the designated charity fund identification device may be performed by a reader which forms part of an electronic transaction device.

The electronic transaction device may have software installed on it for calculating the amount of the financial contribution and for making the financial contribution to the designated charity fund. The method may include the further step of printing a receipt which indicates the amount of the financial contribution, the designated charity fund to which the financial contribution was made and the date on which the financial contribution was made.

In a preferred embodiment, the account identifier is stored on the designated charity fund identification device. The designated charity fund identification device may include a magnetic strip, a barcode, an electronic chip or a combination of these.

Brief Description of the Drawings

The invention will hereinafter be described in greater detail by reference to the attached drawings. It is to be understood that the particularity of the drawings does not supersede the generality of the preceding description of the invention. Figure 1 is a flowchart illustrating an overview of the steps involved in the present invention.

Figure 2 is a flowchart illustrating a preferred embodiment of the present invention.

Detailed Description

Referring firstly to Figure 1 , there is illustrated a method of using electronic transaction apparatus to make a financial contribution to a designated charity fund. Firstly, a designated charity fund identification (DCFI) device 4 is read. DCFI device 4 has stored on it designated charity fund identifier 4a, identifying the designated charity fund to which a financial contribution is made. A contribution rule 4b is stored on DCFI device 4 and is used to determine the amount of financial contribution 8. Financial contribution 8 is then acquired from participant 2 who has funds for contribution 6a. Designated charity fund 10 is then automatically credited with the amount of financial contribution 8 in an electronic financial transaction in real time. The electronic financial transaction is preferably conducted over a secure electronic financial transaction (EFT) network. The method may be implemented using any suitable electronic transaction apparatus. Many types of point-of-sale funds transfer apparatus currently in use such as EFTPOS (electronic funds transfer - point of sale) machines and credit card verification machines are suitable for this purpose. Some of these may be adapted for use according to the invention simply by loading new software; others may require additional hardware.

DCFI device 4 may be any suitable device which is capable of storing designated charity fund identifier 4a and contribution rule 4b. Preferably, DCFI device 4 is a card similar to a banking card or credit card which has a magnetic strip coded with designated charity fund identifier 4a and contribution rule 4b, in which case the electronic transaction apparatus preferably includes a magnetic strip reader or "card swipe" device. Alternatively, DCFI device 4 may be a card with a barcode (in which case the electronic transaction apparatus preferably includes a bar code reader) or a smartcard memory chip (in which case the electronic transaction apparatus preferably includes a smartcard reader) or any other suitable device which stores the designated charity fund identifier 4a and a contribution rule 4b.

Contribution rule 4b may be any suitable contribution rule. One suitable contribution rule would be "round up the transaction amount to the next whole dollar amount". Another rule might be "round up the transaction amount to the next dollar amount divisible by 5, or 10". Another rule might be "add $2 to the value of every transaction over $10". Another rule might be "add $20 to the first transaction every month".

In one example of the invention, participant 2 makes financial contribution 8 by providing DCFI device 4 and cash to a merchant or agent of designated charity fund 10. Once the cash is acquired, the merchant or agent then forwards financial contribution 8, automatically and instantaneously, to designated charity fund 10 via an electronic transaction. For example, participant 2 may purchase an item worth $7 at a supermarket using a $10 note. Participant 2 may have a card (DCFI device 4) issued by a football club, with a barcode on it (designated charity fund identifier) identifying a fund associated with that football club and a contribution rule. Participant 2 presents the checkout attendant with the card which is scanned and causes the amount of the transaction to be rounded up to $10 according to the contribution rule, and the amount which exceeds the purchase price ($3) is automatically sent to the football club. This is accomplished by reading the barcode on the card using a barcode reader associated with the cash register.

In another example, a retail store may have a choice of, say 5 different charities for customers to support. Purchasers when acquiring goods by electronic means such as a credit card purchase may be invited to make a donation by selecting one of the charities and a contribution rule for calculating the amount of the donation. The checkout operator then scans a DCFI device, identifies the selected charity, and the computer device scanning the card calculates the amount to be donated based on the contribution rule. The donation, e.g. the "rounded up" amount is then sent automatically and instantaneously to an account associated with that charity.

In another example, participant 2 makes financial contribution 8 to designated charity fund 10 when making a purchase as illustrated in Figure 2. The purchase may be of any kind, including a purchase for groceries from a supermarket; clothing, home-wares or other items from a department store; fuel from a fuel outlet or the like. When making such purchases, it is likely that the purchase amount is "X" dollars and "Y" cents. In the example provided in Figure 1 , the purchase amount is $76.54. Contribution rule 4b provides instructions for calculating the amount of financial contribution 8, based on the purchase price. Contribution rule 4b may, for example, require the purchase price to be rounded up to the next whole dollar value. Accordingly, financial contribution 8 is the whole dollar value less the amount of the purchase price. In the example provided, financial contribution 8 is calculated as follows: Purchase price = $76.54 Whole dollar amount = $77.00

Financial contribution = whole dollar amount - purchase price

= $77.00 - $76.54 = 46c

Preferably, participant 2 pays for the purchase using a credit/debit card 6 which has incorporated into it the features of DCFI device 4. The magnetic strip on a credit or bank-type card may have the designated charity fund identifier encoded into it as well as the normal credit card or bank-type card information. Alternatively, participant 2 may use credit/debit card 6 to effect payment for the purchase and a separate DCFI device 4 to identify designated charity fund identifier 4a and contribution rule 4b. Alternatively, a card with an electronic chip may be used as credit/debit card 6, and/or DCFI device 4. In an embodiment where the features of credit/debit card 6 and DCFI device 4 are combined, participant 2 provides a merchant with credit/debit card 6 which is read by swiping or scanning or otherwise reading it using an appropriate DCFI device reader 14. This provides designated charity fund identifier 4a, contribution rule 4b and account identifier 16 which identifies an account belonging to participant 2 which is automatically debited for the amount of financial contribution 8 in addition to the purchase price.

It is preferred that DCFI device reader 14 is incorporated into an existing electronic financial transaction (EFT) unit using software and/or hardware as required. Therefore, the same secure device can be used to effect transfer of financial contribution 8 and payment for the purchase from funds for contribution 6a and funds for purchase 6b which are linked to credit/debit card 6. Once credit/debit card 6 is debited for the amount of financial contribution 8, it is easily automatically transferred for crediting to designated charity fund 12. It is preferred that DCFI device reader 14 is also equipped with means for printing a receipt, or that the merchant can otherwise furnish participant 2 with a receipt for financial contributions which are made using the method of the present invention. It is preferred that the receipt has printed on it the date on which financial contribution 8 was made, the amount of financial contribution 8 and the designated charity fund 12 to which financial contribution 8 was made. Where the financial contribution has been donated to a charity for which donations are tax deductible, this process may be used to supply the receipt necessary to claim the donation for taxation purposes.

Contribution rule 4b may be defined by participant 2, a merchant, or any other suitable person or organisation. In one embodiment, the organisation who benefits from financial contributions made defines contribution rule 4b. The method can then be used by organisations as a relatively painless means of collecting annual subscriptions or other predetermined donation amounts. However, participant 2 may in appropriate circumstances override contribution rule 4b to make a contribution which is greater than or less than the contribution which is calculated according to contribution rule 4b.

DCFI device 4 may be provided to participant 2 by an organisation which benefits from financial contributions 8 which are made to designated charity fund 12. Accordingly, DCFI device 4 may be pre-programmed with contribution rule 4b defined by that organisation. In an embodiment where the features of DCFI device 4 are combined with credit/debit card 6, the resulting card may be provided to participant 2 by a financial institution which provides the line of credit or access to other financial account. In such an embodiment, either the financial institution or the organisation benefiting from financial contributions may define contribution rule 4b. Alternatively, participant 2 may define contribution rule 4b.

It is to be understood that DCFI device 4 may be programmed with more than one designated charity fund identifier 4a and more than one contribution rule 4b. Accordingly, DCFI device 4 may be used to make different financial contributions, based on different rules. One rule may result in contributions being made to fund A when DCFI device 4 is used in supermarkets, contributions being made to fund B when DCFI device 4 is used in department stores and contributions being made to fund C when DCFI device 4 is used in fuel outlets.

Organisations who benefit from financial contributions 8 which are made to designated charity fund 10 may include charities, not-for-profit organisations, sporting clubs or religious groups or any other suitable charitable organisation. In any of these cases, the method provides an easy and efficient way for participants 2 to make financial contributions to a designated charity fund.

The organisation which benefits from designated charity fund 10 may provide an incentive for participant 2 to make financial contribution 8. If the organisation is a sporting club, the incentive may, for example, be an entry in a lottery for which the grand prize is a ticket to a game in which the club may participate. Alternatively, the participant may be rewarded with membership or other categories of recognition, based on the amount or frequency of their financial contributions.

A further modification of the invention includes using DCFI device 4 to make purchases accompanied by a financial contribution to a charity fund over the Internet or using a telephone, where the step of reading the designated charity fund identification device includes using the telephone keypad to input a string of characters which provide access to designated charity fund identifier 4a and the contribution rule 4b. Alternatively, the user may have a "card swipe" device or a smartcard reader associated with a computer connected to the Internet, and these can be used to accomplish the method of the invention.

As a further variation on the invention, the DCFI device may be used as a donation card. Rather than going to the effort of writing and posting a cheque to a charitable or sporting organisation, a donor may simply visit a retail establishment or an automatic teller machine, arrange for the DCFI device to be scanned, and specify a donation amount (unless the DCFI device is already programmed with a specific donation amount, in which case scanning the DCFI device is the only step required to effect the donation). The electronic transaction apparatus at the retailer's establishment, or the automatic teller machine, reads from the DCFI device details of the donor's account, extracts the donated amount from the donor's account, and transfers the donated amount to the account of the organisation to which the donation is being made. It is to be understood that various alterations, additions and/or modifications may be madelo the parts previously described without departing from the ambit of the present invention.

Claims

CLAIMS:

1. A method of using electronic transaction apparatus to make a financial contribution to a designated charity fund, the method including the steps of: (a) using the electronic transaction apparatus to read a designated charity fund identification device which has stored on it a designated charity fund identifier, identifying the designated charity fund to which the financial contribution is made;

(b) calculating the amount of the financial contribution according to a contribution rule:

(i) stored in the electronic transaction apparatus;

(ii) stored on the designated charity fund identification device; or

(iii) entered into the electronic transaction apparatus;

(c) acquiring the financial contribution from a participant who is making the financial contribution; and

(d) automatically crediting the designated charity fund with the amount of the financial contribution in an electronic financial transaction directly into a designated charity fund account.

2. A method of making a financial contribution according to claim 1 wherein the participant first makes a purchase at a purchase price, and wherein:

(a) the contribution rule includes an instruction to round the purchase price up to a particular amount such as a whole dollar value; and

(b) the amount of the financial contribution is the particular amount less the purchase price.

3. A method of making a financial contribution according to claim 1 or claim 2 wherein the financial contribution is acquired from the participant by obtaining an account identifier which identifies a financial account from which the financial contribution will be made, with the financial account being automatically debited by the amount of the financial contribution in an electronic financial transaction.

4. A method of making a financial contribution according to claim 3 wherein the financial contribution is made when making payment for a good or service, and wherein the financial account is automatically debited by the amount of the financial contribution in addition to the amount of the payment.

5. A method of making a financial contribution according to any one of claims 1 to 4 wherein the designated charity fund identification device is provided to the participant by an organisation which defines the contribution rule.

6. A method of making a financial contribution according to any one of claims 1 to 5 wherein the participant defines the contribution rule.

7. A method of making a financial contribution according to any one of claims 1 to 6 further including the step of printing a receipt which indicates:

(a) the amount of the financial contribution; (b) the designated charity fund to which the financial contribution was made; and

(c) the date on which the financial contribution was made.

8. A method of making a financial contribution according to claim 3 wherein the account identifier is stored on the designated charity fund identification device.

9. A method of making a financial contribution according to any one of claims 1 to 8 wherein the designated charity fund identification device is a card which includes one or more of the following:

(a) a magnetic stripe;

(b) a barcode; and

(c) an electronic chip.