Here's a number worth remembering: when you spend $100 at a locally owned business, roughly $68 stays in your community. Spend that same $100 at a national chain, and only about $43 sticks around.
That's the local multiplier effect, and it's one of the most well-documented principles in community economics. Research from the American Independent Business Alliance and similar studies have consistently shown that independent businesses recirculate a significantly larger share of revenue locally — through local wages, local suppliers, local rent, and local services.
Why the gap is so large
A local auto repair shop like Adam & Son in Colorado Springs buys parts from a local distributor, pays a local accountant, advertises with a local print shop, and employs people who live in the neighborhood. Each of those transactions creates another round of local spending. The money circulates.
A national chain sends profits to a corporate headquarters in another state, buys supplies through a centralized national procurement system, and runs payroll through a regional office. The money leaves.
This isn't about vilifying chains — they employ people too, and they serve a purpose. But the economic math is clear: dollar for dollar, local businesses generate more local economic activity.
ShopGiv adds a second layer
Here's where it gets interesting. The local multiplier effect already makes a strong case for shopping locally. ShopGiv amplifies it by adding a charitable donation on top of that existing local circulation.
When you get an oil change at a participating shop in Colorado Springs, you're already keeping more money in the local economy. With ShopGiv, a portion of that transaction also flows to a community nonprofit — maybe one that helps families cover emergency home repairs, or one that provides meals to seniors, or one that funds youth programs.
So now your $100 oil change keeps $68 circulating locally AND directs a few dollars to a cause that strengthens the community even further. The nonprofit spends that money locally too — on supplies, services, and staff. The multiplier compounds.
The virtuous cycle
This is what gets me excited about building ShopGiv in Colorado Springs specifically. This city has an incredible base of independent businesses and a deeply engaged nonprofit community. The ingredients for a virtuous cycle are already here:
More local spending leads to more donations through ShopGiv. More donations strengthen local nonprofits. Stronger nonprofits improve quality of life in the community. A stronger community attracts more residents and more local businesses. And the cycle continues.
None of this requires anyone to spend more than they already do. It just requires choosing where to spend with a little more intention. Pick the local shop over the chain when you can. Scan your receipt in the ShopGiv app. Let the multiplier do its work.
Small choices, real math
It's easy to think that one oil change or one dinner out doesn't matter. But as AiN Collective's analysis of the $31M nonprofit funding gap shows, multiply your spending across a year, then multiply that across thousands of ShopGiv users in Colorado Springs, and the numbers add up fast. The local multiplier effect isn't a feel-good theory — it's economics. ShopGiv just makes sure that economic engine also powers the community organizations that need it most.
Your next purchase is already going to happen. Make it count twice.