What’s the Buzz

Like many others, I was surprised to read that on February 20, 2023, Amazon will end its AmazonSmile program, which has raised close to half a billion dollars for charities in the last 10 years. The program worked by allowing customers to select a registered organization to support. When customers shopped through the program’s site www.smile.amazon.com, 0.5% of their purchases were donated to their chosen charity.

 The AmazonSmile program has been criticized for donating only a small percentage (50 cents on a $100 purchase) to charity. However, those seemingly small donations made a big difference for thousands of nonprofit organizations and have left many concerned about finding ways to replace the funding. For example, one animal sanctuary in New York’s Hudson Valley tweeted that the $9,400 it received “made a huge difference.” While it might not sound like a lot, those donations "can feed an animal for a year,” and without them, “a life [sic] hangs in the balance.” 

Cynics have also pointed out that AmazonSmile's impact was diluted because it was limited to purchases made through the AmazonSmile website versus being integrated into their main platform. Over $500 million donated (average $50 million per year) is nothing to sneeze at. But if Amazon decided to make giving back an essential part of the Amazon shopping experience, using 0.05% as the model, it could donate $257,000,000 million a year, based on net sales of $514 billion as reported in 2022. 

Nonprofit organizations, especially smaller 501 c 3’s, are competing for the same donor dollars, and AmazonSmile was a great way for them to tap into their network for fundraising. Six out of ten (or 60%) of American households participate in some sort of charitable giving, and over 80% of all donations to charities in the US come from individuals, according to The Philanthropy Roundtable. AmazonSmile was a great way to fulfill the desire to give back and do good.

Although Amazon doesn’t explicitly share donation amounts per organization, some charities, such as the World Wildlife Fund, have reported raising nearly 5 million dollars through the AmazonSmile program since it started in 2013. But as Amazon said in their press release, “After almost a decade, the program has not grown to create the impact that we had originally hoped. With so many eligible organizations—more than 1 million globally—our ability to have an impact was often spread too thin.” 

From a corporate giving perspective, I can understand that trying to support over 1 million charities is not the best strategy. At BuzzRx, we made a decision early on to focus our efforts on a handful of charities, including Make-A-Wish^® America, the American Society for Prevention of Cruelty to Animals^® (ASPCA^®), the National Kidney Foundation^®, and 16 regional food banks. Our nonprofit partners are in distinct, non-competing categories unified by their health-related missions in order to amplify our impact. 

At BuzzRx, we’ve seen the benefits of integrating our philanthropic programs into our business model, resulting in nearly $9 million donated. When someone saves using a BuzzRx card or coupon, we donate to the charity partner of their choice at no cost to the cardholder—“you save, we donate.” 

Amazon says that it will continue to give back in different ways, such as building affordable housing, but I am still disappointed on behalf of many organizations to see them make this decision. The move comes as Amazon is laying off 18,000 workers, but a company spokesman said the decision to end the AmazonSmile program was not a cost-cutting measure. Perhaps that is true, but in my opinion, they will be losing a lot more than donor dollars. In my experience, giving back has an ROI that cannot always be measured with quantifiable metrics. Businesses with strong philanthropic programs can reap tangible short- and long-term benefits, such as boosting employee morale because they are making a difference, fostering camaraderie and providing team-building opportunities, enhancing the company’s reputation, and attracting customers who want to support businesses with a cause.

Giving back is the right thing to do, and at BuzzRx, it will continue to be a key component of our business. Social responsibility is in our DNA, and we are committed to making a difference in the lives of others. As far as the AmazonSmile program goes, the good news is that as part of the termination process, Amazon has announced they will make a one-time donation of three months’ earnings from the AmazonSmile program in 2022 to participating charities, a sort of severance package, which should ease the pain of parting. While I firmly believe in the importance of individual giving—whether that is money, time, or other means—businesses are in a unique position to make a big impact and should all continue to do their part. How is your business giving back?