Give.org - BBB Wise Giving Alliance

How Much Does My Purchase Benefit The Charity? Watchdog Advises Holiday Shoppers on Charity Sale Promotions

BBB Wise Giving Alliance's Charity Standards Call for Disclosure in Cause-Related Marketing Consumers Should Look for Promotion Disclosures that State How Much of the Actual or Anticipated Amount of the Purchase Price Benefits the Charitable Organization?

Arlington, VA - December 4, 2003 -- The BBB Wise Giving Alliance advises holiday shoppers to carefully look at product promotions that benefit charities to see if the advertiser clearly discloses the amount of the purchase price that will go to the charitable organization.

"Our thoughts turn to those in need this time of year, a fact well-known to advertisers. It's okay to let your generous spirit guide your buying decisions; just make sure you're comfortable with the advertiser's level of generosity. If you're asked to buy one product over another because that action will assist a charity, you have every right to know what that assistance will be," said Art Taylor, president and CEO of the BBB Wise Giving Alliance, a national charity watchdog.

In most instances the amount going to charity is usually less than 10% of the purchase price, according to the Alliance. "But that small change can add up to big bucks for the charity. It is estimated that in 2003 charities will cumulatively receive almost $1 billion from cause-related marketing activities," Taylor noted.

"Consumers tend to believe that much more is going to the charity than actually is. In the interest of promoting accountability and helping the public make informed decisions, our comprehensive charity standards call for cause-related marketing promotions to clearly disclose how much that contribution will be," Taylor said.

A typical cause-related marketing promotion will ask a shopper to "Buy the product of Corporation XYZ and a contribution will be made to Charity ABC." The BBB Wise Giving Alliance's Standards for Charity Accountability recommends that such promotions disclose, at the point of solicitation, the actual or anticipated amount of the purchase price that will benefit the charity (e.g., 5 cents will be contributed to ABC Charity for every XYZ Company product sold).

"Vague disclosures such as 'a portion of proceeds' or 'profits from the sale' that will go to ABC Charity do not enable the consumer to make an informed decision and do not meet this standard," Taylor said.

The BBB Wise Giving Alliance is the only charity watchdog that includes this disclosure recommendation as part of its comprehensive charity standards which address charity finances, governance, fund raising practices, solicitations and informational materials. Many other charity watchdogs confine their reports and evaluations solely to the charity's finances. The Alliance offers detailed reports on more than 450 national organizations.

Additional information on cause-related marketing can be found in the cover-story of the Better Business Bureau Wise Giving Guide, a quarterly magazine that features information on giving practices and includes a summary listing of national charities and shows which organizations meet or do not meet its comprehensive charity standards. Information on how to obtain the Guide, and other helpful tips on wise giving during the holiday season, can be found on the BBB Wise Giving Alliance web site at www.give.org.




BBB Wise Giving Alliance: A merger of the National Charities Information Bureau and the Council of Better Business Bureaus' Foundation and its Philanthropic Advisory Service