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Oxfam forges partnership with loyalty scheme company Nectar

By Jenna Pudelek, Third Sector Online, 3 April 2013

Oxfam forges partnership with loyalty scheme company Nectar

People who sign up to Tag Your Bag will be able to earn loyalty points for items they donate to the charity's shops

Oxfam hopes a new partnership with the loyalty company Nectar, which will allow people to collect points on items they donate to the charity’s shops, will raise millions of pounds for its international development work.

According to Oxfam, the initiative is the first time a loyalty programme has rewarded people for donating to charity.

From tomorrow, people who sign up to the charity’s Gift Aid scheme for donated items, Tag Your Bag, will earn two points for every £1 their items raise when sold in Oxfam shops or online.

Donors will also receive 100 points when they first sign up.

Oxfam said the scheme would act as an incentive to drive much-needed, quality donations to its shops and help it to reach a new audience.

Sarah Farquhar, head of retail brand at Oxfam, said: "Collecting Nectar points in this way is exclusive to Oxfam. We are aiming to raise millions of pounds from the scheme, which will go a long way towards supporting our vital work fighting poverty around the world." 

People who sign up to Tag Your Bag will receive a welcome pack including tags that must be attached to their donated items before they are dropped off at Oxfam stores. The charity said it would add a unique code to each item so that sales could be traced back to the individual donor. This will allow the points to be rewarded when the item is stored.

Nectar is the UK’s largest loyalty scheme – 19 million people collect points when they shop at various retailers, including Sainsbury’s. Nectar’s website says that 500 points gives its collectors £2.50 to spend.

The partnership was first launched in September last year, when Nectar card holders could spend their points on items bought through Oxfam Unwrapped, a scheme through which donors can buy gifts such as goats and school supplies to help people in poverty.

James Frost, marketing director at Nectar, said: "We’re delighted to be announcing this exciting new phase in our partnership with Oxfam. Customers will now be able to earn Nectar points on items that they donate to Oxfam through Tag Your Bag.

"Given the hugely positive response to the first phase of our partnership, Oxfam Unwrapped, we’re confident that this new initiative will be similarly well received by our customers." 

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