In today's evolving landscape of philanthropy and corporate social responsibility (CSR), corporations like Facebook and Amazon have made significant negative changes by reducing or eliminating their social impact programs. This shift has left purpose-driven customers and employees dissatisfied, while nonprofit organizations face increased vulnerability in an already challenging economic environment.
According to a Harvard Business Review report, even though companies often scale back social impact programs during economic challenges, there's a growing interest in such initiatives. Research shows that 7 out of 10 employees seek jobs that contribute to societal impact, and 73% of consumers expect companies to demonstrate support for communities and the environment. This is even more pronounced among millennials, where more than 90% expect it.
Facebook: The Social Network Giant Now Charges Fees 💰
As the first and largest social network, Facebook has pioneered new ways of connecting people as well as fundraising. However, the recent decision by Meta (formerly Facebook) to partner with PayPal Giving Fund (PPGF), and no longer cover payment processing fees for donations to charities on its platforms, affects thousands of nonprofits negatively. They also removed their entire recurring giving program, which has come as a shock to many nonprofits who depend on recurring gifts for financial stability. With recurring donors giving close to 50% more than one-time donors, they provide a steady flow of funds year-round (especially during uncertain times).
Amazon: Their Shopping with Purpose Program Gets Cut ✂️Earlier this year, Amazon announced they would discontinue their charity donation program, AmazonSmile, amid cost-cutting measures and "not creating the impact it had hoped," despite having raised over $500 million for 1 million organizations since it launched in 2013. AmazonSmile was a game-changer for nonprofits, allowing shoppers to donate a portion of their purchases to their chosen charity, all while shopping with ease for their favorite products.“These four dogs all came from a rescue charity supported by AmazonSmile”...Both nonprofits & customers alike have taken to social media to share their reactions to the news, including how much this program helped them to survive, particularly the smaller nonprofits that relied on micro-donations.
Why Pledge Stands Out 💜
At Pledge, we are doing everything possible to address these challenges and continue to drive new funding sources to nonprofits in the US and around the world. Our commitment remains to provide the most seamless and innovative fundraising solutions to power generosity.
We proudly offer a platform that not only supports multiple fundraising options, including e-commerce plugins like our API, our award-winning Give & Grow Shopify app (even more flexible than Amazon Smile!), and recurring giving options on all of our donation forms.
Unlike other fundraising platforms, we also cover credit card fees on donations up to $1,000 each. With our “Free The Fee” commitment, Pledge ensures that nonprofits receive the most funding possible: 100%! Given that over 98% of donations processed by Pledge fall under this $1,000 threshold, nonprofits typically receive 100% of the funds raised through a Pledge fundraiser.
This seemingly small credit card fee, often just $2.9% + $.30, can add up to significant amounts. Whether enabling nonprofits to hire a new staff member or driving direct relief in times of crisis, we understand the critical importance of making every dollar count. For example, a recent fundraiser for Maui disaster relief, raised $70k more in donations, thanks to our commitment to Free the Fee by covering these fees rather than taking them out of donations. Imagine the difference that $70k can make in disaster response & recovery! We proudly cover credit card fees all year round, for all Pledge fundraisers.
For Employees & Companies:
Pledge offers multiple options for companies looking to engage employees in value-aligned giving campaigns, from fundraiser pages to custom funds. Additionally, companies can also unlock the generosity of customers and allow them to give back to the causes they care about, too, by using our donation APIs!
Using Pledge's commerce solutions not only creates a positive impact, but it’s also good for business. It enhances company loyalty, attracts socially conscious consumers, reduces costs associated with CSR initiatives, and boosts brand awareness (check out Jennifer Garner’s Once Upon a Farm and how they showcase the impact of $376,388 meals provided to-date through Save the Children via Pledge!).
When businesses involve the public toward reaching their impact goals, it enhances the lifetime value (LTV) of their customers. People want to support companies and brands that align with their values and contribute to making the world a better place. With the world's largest nonprofit database that includes over 2 million verified nonprofits - and donations facilitated in 100+ countries - Pledge helps companies and nonprofits reach a wider donor base.
Check it out! By using Pledge’s global donation platform, Project CAT, launched by Warner Bros. Discovery, has helped to restore 13 million acres for tigers with donations from customers from over 94 countries.
So, What’s Next?
In times when companies are scaling back their CSR initiatives and social impact commitments in an effort to cut costs, the world needs platforms that don't burden them with extra fees but ensure every dollar raised goes to where it’s needed most.
Today’s landscape offers a unique opportunity for all stakeholders to stay informed and make choices that align with their values. At Pledge, we remain committed to supporting nonprofits, companies, and donors in their pledges to do good. Join us in powering generosity for the causes you care about the most, with no fees attached, no startup fees, and no subscriptions 😉. Start your journey here today!