Amazon Smile is probably the best-known charity shopping program, but as recently announced by the company, it will be discontinued on February 20, 2023. For those who still want to benefit from online shopping donations, there are reliable alternatives like Gooding or WeCanHelp.
Donations to Organizations through AmazonSmile in the Millions
In an email posted on their blog, Amazon informed registered NPOs about the closure of their AmazonSmile donation program.
The company stated that it plans to focus its donations on projects with greater impact, as Amazon Smile did not generate the desired impact. As a consolation, a final donation equivalent to three months of donations will be given to all registered non-profit organizations. Despite its end, there are other reliable alternatives for charity shopping, such as Gooding and WeCanHelp.
Impact of Amazon Smile
Amazon Smile was beloved by donors and organizations alike. Worldwide, over 1 million NPOs registered, and around $500 million in donations were generated. In Germany alone, $27 million was distributed to organizations over the six years the program was available. Given that only 0.5% of the purchase value was donated, these figures are quite significant. For some NPOs, Amazon Smile provided substantial sums, while for others, it offered a steady, effortless income stream.
Criticism and Concerns
Many organizations are understandably disappointed by Amazon’s decision. The company often faces criticism for poor working conditions and the broader impact of online shopping. Amazon Smile also had critics; consumer watchdogs found that many products available through Amazon Smile were cheaper elsewhere, suggesting that saving money and donating directly could generate higher donation amounts.
Amazon’s reasoning for ending the program raises concerns about concentrating resources where the “most impact” can be achieved. This trend, particularly noticeable in the US, involves large donors only supporting causes where the impact can be clearly quantified and compared. Determining the impact of charitable work is complex, requiring expertise, time, and money, often only achievable through long-term scientific studies.
This approach disadvantages smaller organizations or those serving niche audiences, which may not have the resources for extensive impact measurement or the scale to compete with larger NPOs. It implies that organizations must prove their worth through statistics and graphics to qualify for donations, replacing philanthropic trust with profit-oriented methods.
Charity Shopping Alternatives for Non-Profit Organizations
Instead of mourning the end of Amazon Smile, consider these proven alternatives:
1. Gooding
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- Overview: Gooding collaborates with over 2,000 online shops, enabling users to donate a portion of their purchases to their chosen non-profit organization at no extra cost.
- Features: Users can shop as usual, with a percentage of their spending going to charity. Gooding provides various tools and plugins to remind shoppers to use the platform. Shoppers can set the donation percentage themselves, with a recommended 30%, ensuring at least 70% of the commission goes directly to NPOs.
2. WeCanHelp
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- Overview: WeCanHelp partners with numerous online retailers, allowing users to support non-profits through their everyday online purchases.
- Features: Easy-to-use interface, a wide range of partner shops, and the ability to track donations. The platform offers a fixed 90% of the commission to the chosen NPO. The commissions from online shops average 5-6% of the purchase value.
- Shoppers can choose from hundreds of large and small online shops for their purchases, instead of just one.
- They reach people who prefer not to shop on Amazon.
- Instead of 0.5% of the purchase value on AmazonSmile, 5-6% is donated.
- Both platforms offer convenient apps and browser extensions to remind shoppers that a clicked online shop participates in the program.
Charity Shopping: Communicate to Your Donors Now
The end of Amazon Smile is a great opportunity to register on other platforms and inform your donors about these alternative options for their charity shopping. Write a dedicated email, include the links to the platforms in your email signature, post them on social media, and mention these free donation opportunities on your website!
Charity shopping is a great addition to your other fundraising channels. However, it remains a channel that your organization cannot fully control. As we now see with Amazon Smile, you should not rely too heavily on such donation revenues.
