Salvation Army, Charities Struggle To Collect 'Cashless' Donations

The Salvation Army is pursuing cashless donations through credit, debit and swipeable smartphone attachments in the age of digital transactions.

The nonprofit, Christian-rooted charity organization has been testing several “cashless” versions of their iconic red kettle donation stations. The Chicago Tribune first reported that the group is looking to update its cash kettle donations in a world that more and more relies on digital apps and plastic for financial transactions.

In addition to credit and debit card donations by the swipe, the Salvation Army previously tried using Square -- a smartphone and tablet attachment that immediately accepts payment. Retailers and restaurants frequently use the in-person transaction tool. But the organization said that trusting strangers to appropriately accept such swipes has been a difficult task.

"As we move to a cashless society, that gets harder; and we need an innovative way to make it just as seamless," said John List, chairman of the economics department at the University of Chicago, who studied charitable giving and spoke with NBC.

Another issue with moving to cashless donations has been the time it takes to simply transfer the money over wireless machines.

"It took three minutes to connect. People just want to put their money in and be quick," said Jeff Curnow, spokesman for the Salvation Army's Midwest region, to NBC Chicago.

The Salvation Army was founded in 1865 by William Booth in London, England, and has since spread to 128 countries around the world. The world-famous red kettle donations traditionally seen around holiday season were started in 1891 by a Salvation Army captain in San Francisco who was collecting donations for free local Christmas dinners for the needy.

According to the 2016 Forbes list of the largest U.S. charities, the Salvation Army fell from number 2 to number 4 behind Feeding America, the Task Force for Global Health and United Way last year. The Chicago-based YMCA rounds out the top 5 behind the Salvation Army. The social service agency, which is also a church with a unique doctrine, is based in Alexandria, Virginia. In 2016, the Salvation Army received $1.9 billion in donations -- a 10 percent decline from the $2.12 billion the venerable group received in 2015.