With the advent of so many companies selling products where a portion of the proceeds benefit charity, I felt compelled to let the consumer know what to watch for:
Donation Transparency for retail items
Percent of net proceeds means = Amount left over after all costs have been accounted for. Which means NOTHING may be donated if there is no profit.
100% of net proceeds or 50% of net proceeds sounds great but unless the dollar amount is specifically spelled out... this is a gray area, that is murky and not transparent.
My policy since I started Charity Charms is to always attach a specific dollar amount to the donation... so there is NO QUESTION about the amount being donated.
For example:
Our Japan Campaign was 100% of NET proceeds donated. The item retails for $20 plus S & H of $4.50 = $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 is $5, and a $1.50 donation was already made, 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%) is donated.
Companies that tout 50% of net proceeds may be donating NOTHING.
Buyer Beware.
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