Pennies saved are still pennies earned for many non-profit organizations, even after the federal government begins the gradual process of removing the coins from circulation.
As of Monday, February 4, the Royal Canadian Mint stopped distributing pennies to banks, other financial institutions and businesses. The federal government announced plans to phase out the one-cent coin in its Economic Action Plan 2012, citing the rising cost of production when compared with its value. The government estimates the phase-out will save taxpayers $11 million a year.
With about 35 billion pennies still in circulation, they won’t disappear entirely. As they remain legal tender indefinitely, customers who pay with cash can still use them at businesses that accept them.
The government is encouraging businesses to round up or down to the nearest nickel on the final cash amount. For example, if something costs $1.01 or $1.02, businesses will round down to $1. For items that are $1.03 or $1.04, the final cost will be $1.05.
Electronic transactions such as debit and credit cards don’t need to be rounded and will not be impacted.
The end of the Canadian penny may impact Canadian charities, however. While some have benefited already, others wonder what will happen to their coin collections.
“In the short term, it’s helping us, because people are unloading their pennies and we are the grateful recipients,” said Danita Senf, national executive assistant of Bruce Denniston Bone Marrow Society.
Even before the government officially announced it was discontinuing the one-cent coin, the society had changed its penny drive to a coin drive. “We were finding that a lot of people don’t spend their dimes and nickels either,” Senf said. “They just put them in a dish at the end of the day, so we get a lot of dimes and nickels as well.”
All the coins the society collects go toward upgrading the oncology room at Powell River General Hospital.
