New Capital One Card Lab Connect Program to Help Nonprofits Enhance Fundraising Efforts
MCLEAN, Va., June 2, 2009 — Today, Capital One Financial Corporation (NYSE:COF) announces the launch of Card Lab Connect, a credit card affinity program that helps nonprofits expand their giving channels, while providing their supporters with a convenient and meaningful way to donate to charity programs. Unlike most affinity card programs which generally cater to larger, national organizations, Capital One Card Lab Connect is available for nonprofits of all sizes.
In the current economic climate, nonprofit organizations are facing a dual challenge of increased need and tightened budgets and these issues are amplified for smaller nonprofits. Cash strapped consumers are finding it more difficult to provide ongoing support. According to the 2009 Capital One Card Lab Connect Charitable Giving Survey, the majority (57 percent) of respondents said that over the past year, they have been unable to make the same charitable donations they have made in previous years due to financial concerns. And, while 61 percent of Americans have supported local organizations in the past, only 34 percent plan to support local organizations this year.
“We recognize that for nonprofit organizations, particularly smaller community-based groups, fundraising programs are an even greater priority in this tough economic climate. The need for their services is greater and, while supporters are looking for ways to help, donations are harder to come by,” said Pam Girardo, spokesperson for Capital One. “Capital One Card Lab Connect aims to help meet the changing needs of nonprofits and consumers, alike. It is a convenient way for people to help support their charity programs of choice.”
Last Fall, Capital One launched the No Hassle Giving Site, (www.capitalone.com/give), a web site that allows Capital One cardholders to research, select, and donate to the cause of their choice. Capital One covers the transaction costs for every donation, ensuring that 100 percent of the donation is delivered to their charity program. Now, Capital One Card Lab Connect offers nonprofits yet another tool to help them attract donations.
Through an easy-to-use online tool, nonprofits can register for Card Lab Connect, create a series of up to three uniquely designed credit cards for their organization, and use online tools to encourage their supporters to apply for the affinity card. All rewards earned on these cards, including one percent of net purchases and an additional $25 with the first purchase, go directly to support the affiliated nonprofit organization. There are no complicated contract negotiations, no member quotas and no exchange of membership/mailing lists as is the case with most other affinity programs.
“Nonprofits today are looking for innovative ways to increase donor support to meet the demands of a tough economy,” said Bill Strathmann, CEO of Network for Good, a leading provider of online fundraising services and how-to resources for nonprofits. “The Card Lab Connect program provides nonprofits with free marketing tools and a convenient new channel to reach, engage and mobilize their supporters.”
Card Lab Connect has already been through a successful pilot phase, which allowed a select number of community-based nonprofit organizations to test the program. Pilot organizations reported that the program not only helped them raise funds but also helped to raise their profiles through the custom card design feature.
"The Capital One Card Lab Connect program provided a simple and effortless way for our supporters to donate, increasing our ability to fundraise and getting ‘Dravet syndrome’ out there and known to people who would otherwise not come across it,” said Mary Anne Meskis, Executive Director of IDEA League.
To learn more about Capital One’s Card Lab Connect, visit www.cardlabconnect.com.
2009 Capital One Card Lab Connect Charitable Giving Survey Methodology
The findings reported in this release are from a telephone survey conducted by the opinion research firm, Braun Research of Princeton NJ. The survey was sponsored by APCO Worldwide of Washington DC. Braun Research completed 1000 interviews with adults, age 18 or older nationwide in the 48 contiguous United States. The interviews were conducted between May 13, 2009 to May 16, 2009. The margin of error for this study is ± 3.09 percentage points for each group at the 95% confidence level. Interviews were monitored at random.
Sampling for this study was conducted using a national probability replicate sample for the United States. All interviews were conducted using a computer assisted telephone interviewing system. Statistical weights were designed from the United States Census Bureau statistics.
About Capital One
Capital One Financial Corporation (www.capitalone.com) is a financial holding company whose subsidiaries, which include Capital One, N.A., Capital One Bank (USA), N.A., and Chevy Chase Bank, F.S.B., collectively had $121 billion in deposits and $150 billion in managed loans outstanding as of March 31, 2009. Headquartered in McLean, Virginia, Capital One offers a broad spectrum of financial products and services to consumers, small businesses and commercial clients. Capital One, N.A. and Chevy Chase Bank, F.S.B. have approximately 1,000 branch locations primarily in New York, New Jersey, Texas, Louisiana, Maryland, Virginia, and the District of Columbia. A Fortune 500 company, Capital One trades on the New York Stock Exchange under the symbol "COF" and is included in the S&P 100 index.