Scrip Fundraising Programs: What Are They & How Do They Work?

Scrip fundraising programs offer a unique, year-round solution for organizations to generate much-needed funds. While they were once primarily used by churches and schools, scrip programs are now expanding to other nonprofits, sports teams, and community groups. By leveraging the power of everyday purchases, these programs create a win-win scenario for families and organizations alike.

What is Scrip?

Scrip fundraising harnesses the everyday purchasing power of gift cards to raise funds. Here’s how it works: families buy gift cards at face value through their organization. Behind the scenes, the organization has purchased these cards at a discount from participating retailers, earning anywhere from 2% to 13% of the card’s value as profit.

These gift cards can be used for everyday expenses such as groceries, gas, or dining out. The result? Families spend money as they normally would, while the organization earns funds without asking supporters to buy products or services they don’t need.

The Benefits of Scrip Fundraising

Scrip fundraising offers several advantages over traditional fundraisers like bake sales or auctions:

• No Extra Spending: Families use scrip cards to buy things they already need, from groceries to school supplies.
• Year-Round Fundraising: Unlike seasonal fundraisers, scrip programs run continuously, allowing funds to grow steadily over time.
• Significant Earning Potential: A single family can earn over $1,000 annually for their organization by using scrip for routine purchases.
• Flexibility: Scrip cards are available for both in-store and online purchases, making them versatile and convenient.
• Budget-Friendly: Families can plan their spending and stick to their budgets while supporting a good cause.

According to recent studies, gift card programs also capitalize on consumer habits: over 61% of gift card users spend more than the card’s face value, with an average of $31.75 in additional spending per card. This statistic highlights the powerful earning potential of scrip fundraising.

How Does Scrip Work?

Scrip works by turning everyday purchases into fundraising opportunities. Organizations purchase gift cards from retailers at a discount—typically 2-13% off their face value—and sell them to supporters at full price. Families use these gift cards for routine expenses like groceries or gas, while the organization retains the difference as profit. This simple model allows supporters to contribute without spending extra money, creating a seamless and sustainable way to raise funds year-round.

Let’s break it down with a real-life example:

An organization purchases 100 scrip cards with a face value of $50 each for a total of $5,000. Thanks to a 5% discount, the organization only pays $4,750. When supporters buy these cards at face value, the organization earns $250 in profit.

Now, imagine scaling this effort. With multiple families participating and regularly using scrip for their everyday purchases, the earnings quickly add up. Over time, this creates a reliable and predictable revenue stream for the organization.

3 Tips for Scrip Fundraising Success

1. Start Small: Pilot the program with a small group to work out any logistical challenges and gauge interest.
2. Know Your Audience: Poll your community to identify their favorite stores and brands to ensure the gift cards offered align with their shopping habits.
3. Embrace Digital Options: With online shopping on the rise, e-scrip (digital gift cards) offers a convenient and eco-friendly alternative to physical cards.

Streamlining Scrip Fundraising with Engage2Reward

Organizations can simplify their scrip fundraising efforts by leveraging tools like the Engage2Reward™ Gift Card Ordering Platform. This platform allows organizations to order and manage gift cards for hundreds of popular retailers with ease. With automated ordering and delivery options, the Engage2Reward Platform removes logistical barriers, freeing up time and energy to focus on achieving fundraising goals.

Register your organization for free and start fundraising with the Engage2Reward Platform.