Abstract: The online coupon distribution system and method distributes discount coupons through a website. The website is designed and constructed to include a “trifold” process that blends discount coupon purchasing with cost effective advertising and charitable contributions into a powerful web presence. The process is called cooperative couponing. The system sells coupons and allocates generated revenue among merchants, a website principal, and a designated charity. The website identifies local merchants in a geographic area. Coupons are electronically distributed on a daily basis. The website features target goal coupons, two subsidiary coupons providing discounts, and five additional weekly merchant coupons strategically placed on the website. The website permits website users to designate a charitable contribution to a charity of their choice based on their coupon purchase.