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| The Basics | 6 painless ways to give to charity
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Many charities now team up with companies to attract your donation. Here's how they make it easy to give to a good cause.
By Bankrate.com
Most of us part with some significant cash -- $1,620 a year, on average -- to support our favorite causes, selflessly expecting nothing in return but a tax write-off and a good feeling inside.
Of course, it's better to give than to receive, but the two aren't mutually exclusive. As more and more charities partner with corporations in "cause marketing" campaigns, which link the stuff you need to needy nonprofits, you can pick up anything from a box of cereal to the latest CD and make a donation while you're at it.
Born 20 years ago when American Express donated money to a Statue of Liberty refurbishment fund every time cardholders put a purchase on the plastic, cause marketing has boomed in popularity in recent years. Why? Call it the halo effect. In a post-Enron world, "consumers want to see that corporations are doing good works," says Mollye Rhea, president of For Momentum, an Atlanta marketing strategies firm. "Consumers realize their power and they will punish companies they think are socially irresponsible."
We also reward the do-gooders with purchases. According to a 2001 study by Cone, a Boston-based marketing firm that helps companies create cause programs, 81% of shoppers say that price and quality being equal, they'd switch brands if the competing brand was associated with a good cause.
Read the fine print
Not all cause-marketing programs are created equal. Some promise a donation in exchange for a purchase; others promise a product in exchange for a donation. In its perennial "Save Lids to Save Lives" campaign, Yoplait pledges a flat $900,000 to the Susan G. Komen Breast Cancer Foundation, but will donate an additional 10 cents for each pink foil lid from one of their yogurt cartons mailed in -- up to $1.2 million (though that's a lot of yogurt). In another recent promotion, anyone making a $25 donation to the American Heart Association through Reebok's Web site earned a free pair of Reebok DMX walking shoes in return.
Before you hop on the shop-for-a-cause bandwagon, read the fine print. Cause-marketing promotions are governed by guidelines from the Better Business Bureau and, in some states, the attorney general's office, so you should be able to find details at the point of sale. "It should be absolutely clear to the consumer what is happening in the program," says David Hessekiel, president of Cause Marketing Forum, a Rye, N.Y.-based group that hands out annual Halo Awards for effective cause campaigns. Similarly, Rhea advises shoppers to look for language that specifies the amount -- either a percentage or a flat dollar figure -- that's going to charity.
A benevolent bottom line
Coming across like a corporation with a conscience makes good business sense. But that doesn't mean the corporation doesn't try to profit from the arrangements. "Many companies have altruistic motives in doing this," says Mark Feldman, executive vice president of Cone's cause branding practice. "They'll tell you it's the right thing to do."
More importantly, the partnerships actually do help charities, says Kathleen Akins, vice president of marketing for the American Society for the Prevention of Cruelty to Animals, whose corporate partners include Clorox and Iams. "We really don't have marketing dollars to spend, so I look for things to piggyback onto to get more exposure." For instance, when Old Navy launched its new line of pet products, the clothing company gave $1 from each online purchase to the ASPCA. "It's a very good way of supporting us because some of these things are things you're spending money on anyway," says Akins. "You're not spending more, but your money is going further."
Start spreading the wealth
Because there isn't a single clearinghouse for cause-related promotions, tracking them down can be largely hit or miss. But consumers can find worthy charities at idealist.org or guidestar.org, both of which have searchable databases of nonprofits. Many larger nonprofits have an online store, where purchases of books, mugs and other paraphernalia help fund programming. Or, you can get on a mailing list that will keep you up-to-date on creative ways to give. Although you won't be able to channel all your spending money back to charity, taking opportunities to shop for a cause is usually worth your time.
Here's a sampling of current cause-related charities:
To the highest bidder: Assuage any guilt you may feel over dropping $300 on Metallica tickets by buying them through Giving Works, the for-charity division of online auction powerhouse eBay, where sellers can designate the charity of their choice to receive a percentage of the sale's final value (usually 75% to 100%). While the selection isn't great, you might be able to score something interesting, such as a walk-on role on the TV show "Judging Amy," auctioned recently by the Feminist Majority Foundation. Another bidder won the chance to be a field reporter at a Pittsburgh radio station -- and raised money for the cancer center at the University of Pittsburgh Medical Center.
High-tech environmentalists: California customers can sign up for DSL or dial-up Internet service through Red Jellyfish, which will make a yearly donation to the Rainforest Action Network on their behalf. Or get a flat 5-cents-a-minute rate for long distance from San Francisco telecommunications company Working Assets, -- not too shabby, even with a $5.95 monthly fee. The long distance carrier divides 1% of its total revenue among 50 pre-approved, progressive nonprofits, like Doctors Without Borders, Amnesty International and the Sierra Club. Bonus: New customers get coupons good for a free pint of Ben & Jerry's ice cream each month for a year.
Shopping for dollars: At Pick 'n Save, a Wisconsin-based supermarket, you can designate a local nonprofit -- a Girl Scout troop, a hospital, a historical society -- to receive 1% of your total grocery store bill every time you use the store's Advantage Plus card. Or register your supermarket loyalty card, debit and credit cards at escrip.com so your purchases at Vons, Safeway, Whole Foods and other stores can earn up to 4% cash back for registered nonprofits.
Hitting the road: The Better World Club bills itself as a socially conscious automobile club -- and to prove it, it donates part of its profits to good causes (so far, $6,000 has gone to Portland, Ore., public schools). Memberships start at $49.95 and include all the roadside-assistance services you expect from other motor clubs. Travelers also can help by giving back frequent flier miles through programs such as American Airlines' Miles for Kids in Need, which helps provide free flights for seriously ill children and their families. Most airlines offer similar programs, so check with a customer service representative.
Pull out the plastic: A number of larger nonprofits, such as the American Cancer Society and many university alumni associations, have linked up with banks to produce affinity credit cards, which donate money to the organization every time you charge. Although donation rates vary, "in general, the amount of money donated through affinity credit card programs is on the order of a penny per dollar," says Hessekiel. "Let's say you spend $10,000 a year on this credit card; you'd be giving $100." It's not much, but because there's usually no annual fee, adding an affinity card to your wallet isn't a hardship. Plus, the card itself can have a billboard effect. "You may inspire somebody else to support this cause," says Hessekiel. Check with your favorite charity to see if it offers an affinity card, says Akins, who adds that signing up for an ASPCA credit card at the organization's Web site provides an additional $75 bonus for the animal rescue organization. "That's like saying, 'I'm giving you a $75 check and I didn't have to write it,'" adds Hessekiel.
Snack attack: Each box top you mail in from a General Mills product -- everything from Cheerios to Hamburger Helper to Pillsbury chocolate chip cookie dough -- earns 10 cents for your local school. Campbell's runs a similar program that lets schools collect labels from Prego pasta sauce, Pace salsa, Campbell's chicken noodle and other products, and then redeem them for education-friendly prizes such as art supplies and software.
Taking advantage of cause-marketing programs shouldn't replace the cash you usually donate. But check writing and cause shopping can work together to put more money in the hands of needy nonprofits. "People often think that it's an either-or situation, and it's just not," says Hessekiel. "This is just another relatively painless way to give."
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