How the end of the penny will affect coin donation-fuelled charities

TORONTO – Copper will soon cease to be the dominant colour in coin donation boxes across Canada, thanks to Thursday’s federal budget announcing the end of the penny.

The Royal Canadian Mint will stop producing pennies this fall, says the government, citing minting costs that have risen to $11 million a year.

“The penny is a currency without any currency,” said Finance Minister Jim Flaherty. “Free your pennies from their prisons at home and donate them to charity.”

And what do charitable organizations have to say about the government’s advice?

“I would echo that sentiment and love for customers at Tim Hortons to think about the opportunity to donate their pennies in our coin boxes,” says executive director of Tim Horton Children’s Foundation Dave Newnham. “If people are looking for a place to get rid of their stored up pennies, they’d be making a great contribution.”

The Tim Horton Children’s Foundation is a non-profit charitable organization that sends economically disadvantaged children to one of their six camps at no cost to children or their families. The “first-class programs and activities” are designed to build self-esteem and leadership abilities.

Many customers are familiar with the coin donation boxes placed beside cash registers on Tim Hortons counters, and have likely thrown in a handful of the one-cent pieces on their coffee break at one time or another.

These coin donations are the second-largest source of revenue, raising almost $8 million for the foundation across Canada and the U.S. every year.

Of that total, pennies represent the largest volume and a dollar amount of $1.5 million.

So what if the penny-participants stop donating altogether?

“I don’t know what’s going to happen after the penny, truthfully,” says Newnham. “One-point-five has a very significant impact if it was to result in a reduction of $1.5 million in our funding each year.”

While the amount is just under 20 per cent of the estimated total revenue, that’s still enough to send 1,500 kids to summer camp at $1,000 per camper.

Tim Horton Children’s Foundation acknowledges the potential challenge of the end of the one-cent coin, but Newnham focuses on the possible short-term benefits.

“The loss of the pennies, long term, is something that would worry us because it’s one less opportunity for coins to be deposited in our box,” he says. “But in the short term, I would hope while pennies are still in circulation that people would think about putting them in our coin boxes.”