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Sharp Decline in Donations: Is It Due to the Disappearance of Cash or Economic Uncertainty?

17.02.2025

February 17, marks International Random Acts of Kindness Day, an apt moment to reflect on how Estonians’ donation habits have evolved. While spontaneous good deeds can be both large and small, consistent charitable giving requires a systematic approach and modern solutions.

Statistics from Ülemiste Shopping and Entertainment Center’s donation boxes indicate a significant decline in the total volume of charitable donations. In 2020, donation boxes collected over €16,000 for charitable organizations, whereas by early 2024, this figure had dropped below €3,000. This raises an important question: Is the decrease in donations due to the overall decline in cash usage, or does it reflect a deeper shift in people’s economic confidence?

Tiia Nõmm, Head of Corporate Responsibility at Ülemiste Center, pointed out that there may be several reasons for the decline in donations. “We see that people are generally using less cash, and the small change that used to be easily dropped into a donation box is no longer in their pockets. The volume of donations has been declining for four years, which was one of the reasons why we introduced a card payment option alongside the cash donation box last year,” Nõmm explained.

Statistics show that in early 2024, card payments accounted for about one-third of all donations, confirming the growing importance of digital payment methods. However, Nõmm noted that it remains crucial to adapt to changing payment habits and find new ways to make donating as convenient as possible, such as introducing mobile payments or QR code solutions in the future.

At the same time, Nõmm emphasized that the economic situation cannot be ignored, as it makes people more cautious about their spending, with every purchase and act of generosity becoming a more deliberate decision. “In these uncertain economic times and with tax increases in the background, it is understandable that rising daily expenses may affect people’s ability to donate,” Nõmm stated. “Donating has become a highly seasonal activity—people mostly think about it during Christmas or on special occasions. However, charitable organizations need stable and consistent support to plan their activities long-term and ensure continuous assistance to those in need.”

Nõmm believes that Estonian businesses have a significant role to play in fostering a culture of giving. “A single shopping center cannot solve this issue alone. Donations should be a natural part of responsible consumer culture, but this requires a systematic approach. Modern payment solutions and digital donation options must become the norm everywhere—in shopping centers, cultural institutions, sporting events, and beyond. Only then can we create an environment where donating becomes a natural part of everyday life. Our role is to lead by example and share our experiences with others to build a better system for supporting charitable causes together,” said the Ülemiste Center’s Head of Corporate Responsibility.

At the Ülemiste Center donation stand, visitors can support four charitable organizations—Tartu University Hospital Children’s Foundation, the Estonian Red Cross, the Estonian Animal Protection Society, and the Estonian Fund for Nature—through both cash and card payments.

To compensate for the decline in donation amounts, Ülemiste Shopping and Entertainment Center supplemented the donations collected in 2024 with an additional €4,500. Additionally, last year, the center donated a total of €16,000 to 25 children’s homes and, as a long-term partner of the Estonian Fund for Nature, has committed €125,000 to sustainable forestry development between 2024 and 2026. Ülemiste Center will continue supporting charitable organizations in 2025, with a special focus on initiatives benefiting children, animals, and the environment.

 


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How to get here

Buses no 2, 7, 15, 45, 49, 64

Tram no T2 and no T4 (stop Ülemiste linnak)

By train to “Ülemiste” stop

In the outdoor car park, parking garage and underground car park parking is free for five hours, after which it becomes paid parking.

Secure Bikeep bike parks are located next to the center