Donation Transparency for Retail Items
With the advent of so many companies selling products where a portion of the proceeds benefits charity, I felt compelled to let the consumer know what to watch for. Donation transparency has never been so important.
Donation Transparency for Retail Items
First, percent of net proceeds means the amount left over after all production costs. Therefore, NOTHING can become donated if there is no profit.
Second, 100% or even 50% of net proceeds sounds great but unless the dollar amount is specifically spelled out this is a gray area. At the same time, it can be murky and not transparent.
My policy since I started Charity Charms is to always attach a specific dollar amount to the donation. As a result, there is NO QUESTION about the amount of the donation.
For example, Our Japan Campaign in 2011 was 100% of net proceeds donated. The item retails for $20 plus shipping and handling of $4.50. Ultimately totaling $24.50. We donated $15 of every $20 which is 100% of the net.
Our retail program has a minimum of 30% net proceeds donation built into the price. We donate $1.50 of every band sold to a retailer. If the retailer purchases the band for $5 and sells them for $10, the net proceeds are $5. Moreover, the $1.50 donation, which equals 30%.
On our website, we donate 25% of the retail price. If you were purchasing a sterling charm which retails for $50, then $12.50 (or 25%) becomes donated.
All things considered, companies that tout 50% of net proceeds may actually be donating NOTHING.
Buyer Beware!
Obviously, the lesson here is buyer beware. In essence, it’s up to the consumer to make sure they are aware of where their donation goes. Ordinarily, people just assume their donation is going to the right place and people who need it. This is why donation transparency is key. In the end, this allows consumers to purchase products and make donations to the people who genuinely need them. Learn more about Donation Transparency at Mashable.
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