# Donating some profits to charity?



## KeenT (Sep 25, 2006)

*Re: Email marketing*

I was considering giving a donation for every sale of a Tshirt. But $1 is may be too much but is 50 cents to small for people to take this factor in consideration?


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## Jasonda (Aug 16, 2006)

*Re: Email marketing*



KeenT said:


> I was considering giving a donation for every sale of a Tshirt. But $1 is may be too much but is 50 cents to small for people to take this factor in consideration?


Instead of giving a set dollar amount, you can give a percentage of the profit. I've seen anywhere from 5% to 50%.


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## Solmu (Aug 15, 2005)

*Re: Email marketing*

I've noticed some businesses (including some t-shirt businesses) that are part of the "One Percent For The Planet" movement.

I'm a bit conflicted over whether or not I think it's a good idea (on the one hand 1% is pathetic, but on the other hand visibility is good and 1% is a minimum contribution, so they might be doing more).

In general (as a customer) I prefer a simple dollar amount donated per shirt than a perentage. It seems more real somehow.

You could argue that anything is better than nothing, I'm just not sure. If the issue isn't brought up, I'm not likely to think about it. If a company says "we donate X" and I feel X is a bit low, I might start questioning why they aren't donating Y.


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## tcrowder (Apr 27, 2006)

I would take into consideration too that all folks will not like whomever you state you are donating to. I for one if in ordering from your site saw (.02 cents from each sale donated to Cindy Sheehan) I would cancel my order!

Just my .02 (that I'll gladly keep)


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## MotoskinGraphix (Apr 28, 2006)

tcrowder said:


> I would take into consideration too that all folks will not like whomever you state you are donating to. I for one if in ordering from your site saw (.02 cents from each sale donated to Cindy Sheehan) I would cancel my order!
> 
> Just my .02 (that I'll gladly keep)


That is a good point!!!


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## Solmu (Aug 15, 2005)

tcrowder said:


> I would take into consideration too that all folks will not like whomever you state you are donating to.


True.

Some charities are less controversial than others (environmental charities that aren't Greenpeace tend to have majority, though not universal, support for example), and some charities could line up with your site's aims if your site has any (a vegan site donating to PETA, an organic site donating to the environment, etc.), but it is something to consider.

Sometimes going local can help: donating to your local elementary school or similar.

There are charities that could be considered frivolous but most people aren't actively opposed to: open source software for example.

Then there are causes that most people support: War Child, cancer.

...one of the problems is always that people (myself included) generally don't trust a lot of charities to actually pass the money on. So the customer is asking "Can I trust this website?" and in turn "Can I trust the charity?". It adds more questions before a purchase, which is not necessarily a good thing.

(note that this isn't an argument for not donating to charity, just one for not telling everybody about it )


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## binki (Jul 16, 2006)

I don't care for companies that advertise they donate my money to their charity. They get the tax deduction and I get a higher price for my product. To me this is just a PR gimick at best. I just donate to my favorite charity and I don't worry about telling others. 

Now, what you could do is work directly with a charity and produce a product for them with an agreed upon donation for sales. I like that idea better. We do that and just make sure that those buying the products are aware we produced them which fits with our 'marketing by word of mouth' strategy.


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## marcopolo2010 (Oct 10, 2006)

binki said:


> Now, what you could do is work directly with a charity and produce a product for them with an agreed upon donation for sales. I like that idea better. We do that and just make sure that those buying the products are aware we produced them which fits with our 'marketing by word of mouth' strategy.


This is exactly how we do it at GoodStorm with our non-profit or political clients. They create an image centered around their campaign (we sometimes consult at this stage) and we use that image on a shirt not only to raise money, but generate greater awareness to their cause, url, statement, etc.

This may seem gimmicky, but done right it isn't - raising money is important, but raising awareness is, too.

As mentioned above, it does get complicated when private individuals sell products with part of the proceeds donated to charity. Naming the charity can turn people off if they don't agree with the politics - but that is where your targeted marketing comes in. You wouldn't advertise a shirt benefiting Cindy Sheehan on a Republican blog - but you would advertise a shirt benefiting the Dennis Hastert legal defense fund there. Okay, maybe that's a bad example, but you get the idea.

Aside from politics, which is always sticky, one of the best examples of "charity selling" is done through the Newman's Own brand. There's not one mention of which charity all those proceeds (100% after costs) benefit, but boy do they make a killing. The most important factor here isn't that people buy Newman's Own because it might benefit St. Whoever's Children Hospital, but that they make one heck of a great tasting product. 

So, first and forement create a product people will want. If approaching a charity asking that you're donating a portion of proceeds to them (and can they please tell their members?) If such an approach can expand your markets and benefit something you believe in, why not? But it shouldn't be the end all be all of your marketing efforts.


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## Jasonda (Aug 16, 2006)

*Re: Email marketing*



Solmu said:


> In general (as a customer) I prefer a simple dollar amount donated per shirt than a perentage. It seems more real somehow.


As a customer, I also prefer a set dollar amount, because it seems more "honest". However, sometimes it is not going to be realistic. For example, if your cost to produce the item changes up or down, this may not affect the sticker price, but it is going to affect the profit margin.

For example, if your profit margin is not very high at the beginning, you might not be able to afford to give $1 per shirt or whatever. Starting out with a % will allow you to give *something* without breaking the bank. If you become more successful later on and your cost-per-piece becomes lower because you are able to buy stock in higher quantities (or some other reason), the % stays the same but the charity will receive a higher donation.

You could also do a hybrid of the two, just say that you will donate X percentage, with the minimum donation being at least X amount.



binki said:


> I don't care for companies that advertise they donate my money to their charity. They get the tax deduction and I get a higher price for my product. To me this is just a PR gimick at best. I just donate to my favorite charity and I don't worry about telling others.


If someone is charging a higher price so that they can donate to charity without affecting their profits, a lot of customers are going to be turned off by that (myself included). But how about this situation: You have two companies selling similar products for the same price. Company A is donating a % to charity and Company B is not. Company A's donation is coming out of their profits, and even if they get a tax deduction from it, they still don't get the $$.


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## binki (Jul 16, 2006)

*Re: Email marketing*



Jasonda said:


> But how about this situation: You have two companies selling similar products for the same price. Company A is donating a % to charity and Company B is not. Company A's donation is coming out of their profits, and even if they get a tax deduction from it, they still don't get the $$.


I would buy from the company that does NOT advertise donating to charity. I support my philanthropies privately and I don't want someone else using my money for their pet cause, or at least don't tell me about it or make a big deal about it. Just my personal preference. Also consider that a lot of charities have huge overhead costs and a lot of the money never gets to where it should go.


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## marcopolo2010 (Oct 10, 2006)

*Re: Email marketing*



binki said:


> I would buy from the company that does NOT advertise donating to charity. I support my philanthropies privately and I don't want someone else using my money for their pet cause, or at least don't tell me about it or make a big deal about it. Just my personal preference. Also consider that a lot of charities have huge overhead costs and a lot of the money never gets to where it should go.


For different buyers there are different tastes - and rightfully so - that's why it's vital to market the right message to the right audience. Broad brushstrokes, when opinions are a factor, are always a bad idea.

Most important, me thinks, is to create a quality product first.


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## binki (Jul 16, 2006)

*Re: Email marketing*



marcopolo2010 said:


> For different buyers there are different tastes - and rightfully so - that's why it's vital to market the right message to the right audience. Broad brushstrokes, when opinions are a factor, are always a bad idea.
> 
> Most important, me thinks, is to create a quality product first.


true


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## jdr8271 (Jun 16, 2005)

Donating a percentage of your profits can be a good business decision. This is one of the principles that helped ben and Jerrys become as successfull as they are. People like to do business with a company that shjares the same moral values that they do. I believe ben and Jerrys donates like 10%, and that is considered to be a massive amount.


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## promptees (Oct 9, 2006)

jdr8271 said:


> Donating a percentage of your profits can be a good business decision. This is one of the principles that helped ben and Jerrys become as successfull as they are. People like to do business with a company that shjares the same moral values that they do. I believe ben and Jerrys donates like 10%, and that is considered to be a massive amount.


that is so true. I was inquiring on donating to the redcross international relief fund. but there is a long process and you must meet certain qualifications. There's also the paperwork and taxes you have to worry about at the end of the year. you have to send your customer a slip so they can get their refund than you have to take accurate records of how much you make at the end of the year and than there's the nasty tax forms you have to fill out on your side. it's a hassle but if you truley belive in it, it's definitely possible.


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## KeenT (Sep 25, 2006)

*Re: Email marketing*



marcopolo2010 said:


> For different buyers there are different tastes - and rightfully so - that's why it's vital to market the right message to the right audience. Broad brushstrokes, when opinions are a factor, are always a bad idea.
> 
> Most important, me thinks, is to create a quality product first.


I agree, and unfortunately for some niche their is not always an appropriate charity. It's my case now but for my next project their is definitely opportunity to support a charity, gimmick or not it's better than nothing...
Thanks for your thought
Hub


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