Big donation vs. small donation

[dereksbicycles]

I'm sure that non-profit organizations are always happy with any donations. My question here is how does it affect you as an organization. See, let's say I wanted to donate 95% of my sales to an organization group. I bet people will be thinking, wow!!!! That is so cool that they want to donate this much!! I would love to shop there, you know.

What if I decided to donate 10% of my sale to help non-organization groups? I bet many customers will yawn. It's like, "I guess they really don't want to donate. They're just trying to get themselves on the map with cheap donation." People won't buy a $20 item so that $2 can be donated. Why not just donate $2 instead of spending $20 to donate $2.

Would love to share some thoughts.

[tallen]

One way around this might be to display a running tally of the total donation raised so far, e.g. "Customers of Derek's Bicycles have helped raise over $2,000 for Good Cause so far." That way, they can see that the $2 portion of their $20 purchase can really add up, when combined with others. I don't think customers will yawn at 10% -- that's a pretty good chunk of your total sales (you must have a healthy margin to be able to afford that).

[KristineS]

Personally, I've seen so much of this "a portion of our profits go to charity" stuff that it's starting to love whatever effectiveness it had. I support businesses being charitable and donating time or money to organizations that are doing good work, but I'm turned off by the whole "we'll donate a portion of every sale" idea. If you want to make a donation, make one, but don't tie it to your customers buying something.

That's just my opinion, and I know it's unpopular to some.

[vangogh]

I feel the same way as Kristine does. I've seen companies saying they donate a portion of sales so often that it mostly comes across as a marketing ploy at this point. It doesn't necessarily turn me off, but it certainly doesn't make me want to buy more either. Truthfully if I want to donate money to some organization I can do it directly. I'm not looking to see which products donate a portion of sales to a charity I want to support.

There are times though where I have bought something because of the donation. Sometimes a business will donate 100% of a day's sales to support something that I want to support. For example say a business donated 100% of sales one day to families affected by Super Storm Sandy or the Sandy Hook tragedy. Maybe I want to contribute, but for whatever reason haven't. I see your product, which I'm interested in and you're donating all profits or sales revenue on that day, it could get me to buy.

If you really want to donate to a charitable cause because you genuinely want to contribute go ahead and contribute. In that case I think it's fine to mention that a portion of sales go to the cause and I like tallen's idea of showing the running total so people can see their contribution adds up. Ideally the cause you're donating to is aligned with your product or service because then it will be aligned with your customer's interests. For example people buying bicycles are probably interested in environmental causes ad health causes. I don't think it necessarily means anyone will buy because of the donation, but they'll see you sharing similar values as you do and be more likely to buy from you than a competitor without those values. In this case the amount you're giving really doesn't matter since it's not about the size of the donation, but rather your interest in the charity or cause.

[huggytree]

i wouldnt buy ANYTHING based upon a donation unless its something for boy/girl scouts

i give my charity to who i want....i write out a check monthly....

i dont buy products/services based upon what THEY give to charity...i could care less what they do with my $$$

i think very few people buy a product knowing 10% of it goes to charity

what if the charity is something the buyer doesnt believe in.....there's tons of charities who give a bit to planned parenthood........thats why i dont give to the generic charitys....all the ones i do are very specific


i personally would keep business about business.....if you wish to give charity with a % of your sales just do it....dont advertise it..

when i see someone saying part of their profits goes to a charity i always think its a scam of some sort....charity is about giving, not advertising your giving

[nealrm]

I think it is great when a business donates to charaty. But when you start incorporating your donations into your advertising, it is no longer a genuine donation but a marketing ploy. If as a business you want to donate, then do so. Just don't shout it from the rooftops.

[billbenson]

i wouldnt buy ANYTHING based upon a donation unless its something for boy/girl scouts

i give my charity to who i want....i write out a check monthly....

i dont buy products/services based upon what THEY give to charity...i could care less what they do with my $$$

i think very few people buy a product knowing 10% of it goes to charity

what if the charity is something the buyer doesnt believe in.....there's tons of charities who give a bit to planned parenthood........thats why i dont give to the generic charitys....all the ones i do are very specific


i personally would keep business about business.....if you wish to give charity with a % of your sales just do it....dont advertise it..

when i see someone saying part of their profits goes to a charity i always think its a scam of some sort....charity is about giving, not advertising your giving

While I agree with both you and Neal Huggy, there are plenty of charities out there that nobody is going to be offended by such as helping children in need or hurricane Sandy victims etc.

There are also businesses out there I won't buy from because they take a strong stance on something I don't agree with. I won't buy from them. But I think those businesses know that they will turn off a percentage of customers and accept that.

[Wozcreative]

When I read "$ goes to charity when you purchase this" I instinctively think.. the product price was inflated to accomodate for the charity. I would rather buy the product without that saying. I choose the charities that I am passionate about.

[billbenson]

When I read "$ goes to charity when you purchase this" I instinctively think.. the product price was inflated to accomodate for the charity. I would rather buy the product without that saying. I choose the charities that I am passionate about.

Ya, but take my hurricane Sandy analogy. If a restaurant you like (or don't know but want to try) didn't inflate prices and had a support Sandy victims night, and showed the fund they were donating to. Wouldn't that be an enticement to try the restaurant?

[Steve B]

I also agree connecting charitable contributions to business would not affect my purchasing decision. Maybe when it was a new thing it had some impact, but I'm guessing nobody pays much attention to it anymore. I also assume they have inflated their prices or they will "forget" to make the donation anyway.

[Wozcreative]

Ya, but take my hurricane Sandy analogy. If a restaurant you like (or don't know but want to try) didn't inflate prices and had a support Sandy victims night, and showed the fund they were donating to. Wouldn't that be an enticement to try the restaurant?


No. Who cares if they are donating? What I want to know is what's on the menu and what are their reviews. If it is my favourite type of food (sushi), I will do my research to find out the best place to go to in the location I am at. I do NOT want to be disappointed with sushi. Donation's? Who cares? What I put in my body is more important when I am hungry.

As for a product that claims to take a percentage for a charity, I won't buy it unless it is cheaper or ACTUALLY a better product than the other one. I'm a money conscious buyer for regular household products like sponges or whatever.

If I need to purchase a bigger product that I need to work for years and years. I am then going to look at quality and forget the price. Again.. who cares about if they donate to some charity in kony island. Do you think mcdonalds sells more burgers because they offer charities? No. That is just a "stint" for them to look a little friendlier to the masses so they seem more "real" while they bulldoze the world's resources and feed ups mud in buns.

[billbenson]

Well at least I will agree with you on the sushi part. My favorite food as well

[vangogh]

I don't think it would motivate me either Bill and in your example I actually know people who were affected by Sandy. In fact most every one in my family was affected to some degree. I wouldn't eat at a restaurant just because they were donating. I can donate myself. If I was going out to eat anyway and choosing between 2 restaurants I frequent and one was donating profits from the night and the other wasn't, I might choose the one donating on that one night. However it would probably mean choosing the other restaurant the next time so no extra business.

Where I think charitable contributions can help is with branding. If you're always donating a portion of sales or profits to charities that are likely to be supported by your customers I think it could help them choose you over a similar business that doesn't contribute. I don't think it's the specific contribution that leads to anything though. It's more you displaying what you're about and stand for. If that other business delivers a better service or product you're likely choosing the one that isn't donating anything, but if there's little to distinguish between them, the donations might be what does.

[KristineS]

I see this sort of thing a lot with new clothing brands and I think that's why it's started to turn me off so much. It's purely a marketing ploy. I'd be much more motivated to buy from a company that donated and then announced what they'd done rather than one which made a big noise about what they were doing an then donated. A restaurant that donated their revenue from one night of dining to Sandy relief and then told people about it would get a lot more respect from me than one that designated a night and tried to up their receipts. Doing good is supposed to be about doing good, not about how you can generate more business.

[vangogh]

I often see it as a marketing ploy too, but I don't mind the occasional donating the day's profits or revenue. At times something happens like an earthquake or a hurricane and people want to do a little more than usual. I usually don't see those all profits or revenue for the day will go to things as a marketing ploy. I think they're genuine desires to help raise money for something. To me the marketing ploys are more the x% of all proceeds go to charity x, y, and z.

I don't really have a problem with the marketing ploy. It's not like I wouldn't buy from a company because they're being charitable. It's just that it won't get me to become a customer or buy more if I already am a customer.

[Harold Mansfield]

A lot of times it comes off as just a marketing ploy. But for some companies or products it makes sense when it is compatible to the business.

A Pet Supply company donating to the Humane Society, makes sense.

An electric car company donating to clean air and water causes, makes sense.

A bike shop were donating bicycles to say The Wounded Warriors Project to help with Veteran's rehabilitation...that makes sense and it fits.
I'd be more impressed by the donation of actual bikes, than I would a percentage of sales. It seems more sincere.

But you also have to be careful too. Donating to politically charged causes like Planned Parenthood may backfire on you and would probably be better unsaid when it comes to your business.

[vangogh]

I think there are lots of companies where it makes sense. To me though it's all less about generating a sale because of the contribution and more about brand building. If you're a pet store or pet supply company and you donate to the Humane Society that's great. I'll think better about your brand and that could get me to buy more from you over time. I won't walk into your store though and see you donate to the Humane Society and start buying things just so part of my purchase gets donated.

For the most part the charitable contributions thing can work as part of brand building if you're giving to charities that fit with your business and what your customers are likely to support and assuming you genuinely want to support those charities. In general I don't think there's a direct correlation to a sale with the contribution. The exception would be when you're contributing to people after a natural disaster and are donating for a limited time. I think in those cases you can get people on the fence to make a purchase. The contribution pushes them over the fence.

[Paul]

I'm actually offended by businesses that donate a part of my purchase to charity. It's a ploy and why should I pay extra for them to donate to the charity of their choice...and get some recognition for themselves. I have my own charities that I like to donate to.

However, I am always impressed with "sponsors" of local causes. Little league, walkathons, donating to charity auctions, scouts etc etc. My local pizza joint has a wall full of thank you letters and commendations from all kinds of local kids events. It makes me feel that I am supporting a local business that supports the local community. Even more impressive is that the owners actually participate, not just financialy, but with their time. From a marketing perspective they have captured me as a totally loyal customer.

[vangogh]

I'm actually offended by businesses that donate a part of my purchase to charity.


However, I am always impressed with "sponsors" of local causes.

Aren't they pretty much the same thing though? I realize they are different, but aren't they both fundamentally supporting something the person wants to support. Why is giving to charity seen as a ploy, while giving to local causes isn't? The local thing could be just as much of a ploy.

I do think too many companies use the charity angle for not other reason than to try to manipulate us to buy something, but I don't think it's true of all of them. I think some people want to contribute to things they believe in. If you're donating money to something that happens to align with your business it can help your brand with your customers to mention it. I don't think it directly leads to more purchase, but I can see it helping get some to choose you over the competition.

[Joanne Perez]

I have been successful through the years in my business so I decided to commit to a charity that supports kids with cancer because I once had a friend who has a child with cancer...

[Paul]

Aren't they pretty much the same thing though? I realize they are different, but aren't they both fundamentally supporting something the person wants to support. Why is giving to charity seen as a ploy, while giving to local causes isn't? The local thing could be just as much of a ploy..

You're right..it's just a personal thing. Making part of my purchase a 'donation" just seems a bit tacky to me. While a business that consistantly supports local causes seems more genuine. In my pizza shop example I can see when I'm in the shop the causes they support, but they don't try to pitch me on a pizza based on that.

My local supermarket is always asking for an extra dollar to support some cause. I'm put off by that because then they donate a large amount, collected from customers, making themselves look good. But I guess anything that ends up helping somebody somewhere is a good thing.

[KristineS]

My local supermarket is always asking for an extra dollar to support some cause. I'm put off by that because then they donate a large amount, collected from customers, making themselves look good. But I guess anything that ends up helping somebody somewhere is a good thing.

Ooh, I hate that "do you want to add a dollar" thing! It so annoys me. I can decide how much money I want to give and to what charities or worthy causes I want to give it. I don't need my local Walgreens telling me I should be supporting their charity of the month.

I agree that helping others is a good thing, but I'm always skeptical about initiatives like the give a dollar thing. I really wonder where all that money goes.

[vangogh]

You're right..it's just a personal thing.

I get that. I think most everything we've said in this thread is also just a personal thing. There are times I see talk of 10% donations and all I can think is I'm being manipulated and there I times I can see the same thing and think how nice the site is for donating.

Makes sense about the pizza place too. I'd rather businesses not pitch me based on a potential donation and like both of you the supermarket thing bugs me. Then again I do round up my bill at times and donate the change I would have gotten. I guess it works.

Like I've said throughout I don't think the messages about x% goes to charity 'y' are going to help generate sales, but at the same time I think if the charities you support are aligned with your brand it's ok to mention that you donate. I think when both are aligned, especially when aligned with your customer's interest, it will be seen less as a ploy and more as one more thing to like your company for doing.

[billbenson]

Then, what about the Red Cross hanging out in front of the supermarket during holidays. They are trying to force donations through guilt as you walk by them. It's very uncomfortable.

[KristineS]

Then, what about the Red Cross hanging out in front of the supermarket during holidays. They are trying to force donations through guilt as you walk by them. It's very uncomfortable.

It's the Salvation Army here, but those bell ringers hanging out in front of stores annoy the crap out of me too. Plus, they start earlier and earlier every year. It used to be between Thanksgiving and Christmas, but now it seems to start right after Halloween. Plus, they're all over in my town, not just the supermarket, but almost every retail outlet you can find.

I know I sound like a curmudgeon, but I really hate this kind of stuff. If I want to donate to some cause or charity, I'll do my research and make a decision about what I can donate and then do it. I don't need someone ringing a bell in my face or setting up a red pot to remind me they need money.

[Paul]

For me the issue is local vs national charities. I just can't get myself to donate to the big ones. I don't know where the money is going, how much is syphened off for administrative costs and I know someone is making a big salary (not that they don't deserve it). Donating to the local fire dept, little league, scouts, food bank or church makes me feel like I do know where the money is going and that it will really end up where it should, helping somebody.

[KristineS]

For me the issue is local vs national charities. I just can't get myself to donate to the big ones. I don't know where the money is going, how much is syphened off for administrative costs and I know someone is making a big salary (not that they don't deserve it). Donating to the local fire dept, little league, scouts, food bank or church makes me feel like I do know where the money is going and that it will really end up where it should, helping somebody.

I'm kind of with you on this Paul. Not that all local charities are automatically above suspicion, but most of those types of charities are helping people on a grassroots level. Plus, we can't forget on the local level that people can donate their time as well.

[Business magnate]

I'm sure that non-profit organizations are always happy with any donations. My question here is how does it affect you as an organization. See, let's say I wanted to donate 95% of my sales to an organization group. I bet people will be thinking, wow!!!! That is so cool that they want to donate this much!! I would love to shop there, you know.

What if I decided to donate 10% of my sale to help non-organization groups? I bet many customers will yawn. It's like, "I guess they really don't want to donate. They're just trying to get themselves on the map with cheap donation." People won't buy a $20 item so that $2 can be donated. Why not just donate $2 instead of spending $20 to donate $2.

Would love to share some thoughts.

I would connect my whole brand to "we are good guys" message.

If you just say: "We donated 95% of our sales to xxxx" and your logo is shark eating a fish (maybe I'm a bit over dramatic here) you will confuse your custommers and they will think you are "a large evil corporation" that is pretending to be a good Samaritan...

However, if your whole brand is based completely on the "we are good guys," and you donate "only" 10% you will create a larger impact.

For example look at "innocent drinks", they created a brilliant brand image. (and I believe they are good guys)

[vangogh]

I think you have it right. It's kind of what I've been saying. If a donation fits with what people think about your brand then it probably helps increase sales indirectly. If you're just tossing in a donation in the hopes that people buy because they want to make a donation, I don't think it will do anything. But if it complements the story you're telling to customers it makes sense.


Then, what about the Red Cross hanging out in front of the supermarket during holidays. They are trying to force donations through guilt as you walk by them. It's very uncomfortable.

If anything it's worse than on a site, because they're there in person and harder to ignore. They aren't there to annoy you though. They're there because it's a good location to reach a lot of people in a short amount of time. It's also not that hard to ignore them. If you feel guilt it's because something inside you thinks you should give. It's not the person collecting causing that guilt.