‘Tag Your Bag’ Donation Process for Oxfam GB

An integrated solution that transforms donor behavior insights into increased aid for developing nations

Oxfam International is known for its global efforts to improve education, health care, sustainable livelihoods, and disaster recovery. Vital to Oxfam GB’s ability to provide aid are the funds it receives from donations and the sale of secondhand items in its retail stores.

The UK government recently began offering 25 percent tax relief on charitable donations made by UK taxpayers through a program called Gift Aid. This tax relief extends to the sales of goods donated to charity shops like Oxfam’s. Recognizing this as an opportunity to increase its funds, Oxfam GB approached IDEO to design ways in which the organization could increase the number of people signing up for the Gift Aid program. The project focused on three areas: in-store awareness of the Gift Aid program, in-store sign-up experience, and connecting donor information to donated goods for tax relief. The result was an innovative ‘Tag Your Bag’ design that contributed to revenue growth of £2.8m a year. The extra income is equivalent to the amount needed to fund Oxfam’s entire aid program in Malawi, which helped 150,000 people in 2012.

To understand the challenges of the donation process and the in-store behaviors of donors and volunteers, members of the IDEO project team first became Oxfam volunteers in two London stores. This immersion in the donation journey, from drop-off to sorting and pricing, provided the key insights needed to create an innovative communication, space, and process design in response to the new government policy.

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Project date: 2009