"ALL PROCEEDS GO TO CHARITY"... really?

[(Deon)]

I was shocked to hear the stats of just how much is is being handed over.. after a quick goggle found this on the net, seems I am not the only one asking the question.

 

Can you believe that Rhinos, fracking, poaching is just another marketing opportunity for some? Does it start with good intention, or was was that never the intention?? You just don't know anymore!

 

This sums it up:

 

You’ve seen it before. ALL PROCEEDS GO TO CHARITY in bold lettering on an event flyer, corporate promotion or email solicitation from a well-meaning friend. They make the claim that if you buy this slick wristband, eat at this buzzy restaurant or attend this “really-fun-you-should-go” event “all proceeds will go to charity.”

 

What’s unclear in this claim is whether or not “proceeds” are every single cent or just what’s leftover after overhead costs are covered. I thought this definition would be clear after a quick trip to my pal dictionary.com but I now see the reason for confusion:

 

Proceeds:

A. the total amount derived from a sale or other transaction.

B. the profits or returns from a sale, investment, etc.

 

It’s used both ways. So how can you make a donation with the confidence to know where your money is going? Assume that definition B is always at play – that all money, after costs are covered, is donated.

 

Why go with net proceeds over gross? Because rarely is anything 100% donated. Nonprofits need to compensate staff for their time, bars take a cut for the booze and companies need to establish a maximum amount of product that they’re able to give away or dollar amount that they’re able to donate without hurting their bottom line.

 

If this is news to you and you’re feeling cheated, you can always opt to make a donation independent of the promotion or ask how much really goes to the cause. Charities will get the help they deserve and you can feel confident knowing you did your part.

[Caerus]

Very little, too much bureaucracy & red tape.

[Let's Ride]

The NPO I volunteer for gives 100% of it's donations to charities, projects etc.

 

We have expenses like electricity but nobody gets paid. Thankfully we can do this as we all have jobs. Things do sometimes take longer as we are busy with our own lives.

[2 X 2]

The only time that all roceeds will go to charity, is when you take your money and give it to a needy erson on the street. All organizations that collects money for the needy will take a cut to cover expenses

[Tubeless]

Not so. Places like Community Chest gives 100% to charity.

 

Expenses covered by investment income.

[(Deon)]

I know of one event where a 'charity somethingorother' for a very good cause that would have attracted good numbers - the organiser was asking for some creative accounting.. turns out the venue wanted nothing to do with it, so event moved venues to a place 'more accommodating'..

 

Now I hear there are groups setting up anti-fracking fund raisers - it is happening - some of which probably are also going to ultimately fund the fund raising.. seems the more sensitive the issue, the greater the public support. I swear that is a form of social rape! It almost needs to be a requirement to state what percentage is going to be used for costs.. this they should surely know before advertising.

[andydude]

You can never give 100% of your revenue. If you think about it, it just doesn't make sense. Even if you "cover" your expenses with investment income, you're actually donating net proceeds, because your investment income is part of total revenue. And also, even giving 100% of net to charities doesn't mean they all use it to help people directly, because they have they own layer of expenses. It works the same with Government where I think around 40% are for administration and only 60% gets spent on actual projects. That's only speaking about rands and not even time.

 

I see no problem with "all proceeds go to charity" as it has to mean net proceeds. How can you host something, with the expenses, and still give gross?

 

In America there's actually listed companies that only go out to solicit donations for charities and keep maybe 10 - 20% for themselves. As long as it's open and transparent, I'm cool with it.