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I emailed fanmail for Clubpenguin and the answer is

Basically, when you give your coins to a certain charity, you are voting for them. So in simple terms, if each charity gets 100 coins (100 votes) each, they will each receive $666,666.00; 2 million dollars split in to three. If one charity gets more votes , they will get more of the 2 million dollars and the other charities will get a bit less.

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Q: How does Coins for Change work?
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