Charity linked vending -- when does it become unethical ?

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chcvending
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Charity linked vending -- when does it become unethical ?

Post by chcvending »

I have seen quite a few posts mentioning help for heroes etc and read about "honesty boxes"
Is the percentage donated to the charity displayed at point of sale ?
Are the honesty boxes really dishonest ?

I have no idea what the minimum required donation is to link with any particular charity but i suspect its not very much at all .

I`m not accusing ... merely seeking information. No doubt most operators donate a decent percentage like 20% and others a token donation 5% or less . But should the punters who may choose a purchase purely to support a cause be made aware of the percentage of money going to it. What is considered a fair and acceptable donation from towers for example.
My personal view is anything under 10% of profits would be plain mean and preferable backed up with the site matching from their commision :) ... Do you work out your donation percentage of profit or gross sales ?
( ALL the above refers to using charity logo`s and clearly marking up machines to boost sales... not to other donations)

Cheers

Shaun
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Re: Charity linked vending -- when does it become unethical

Post by Rossi fan »

Hi Shaun,

The national agreements in place for H4H and the Childline honesty boxes are 10%. Some do give more, but no one should give less than 10%. If they do, then, I think they are a crook.

It is ethical as it is an idea that raises money that would not have been raised. Some have a view that we should donate a bigger % to H4H, but each operator has to make a profit to be able to continue. If 30% was the expected donation, no one would be involved and the charity would get zero. If one operator with 50 towers gave 30%, I estimate that H4H would receive around £600 per month, but if 50 operators with the same towers pay 10%, the charity gets £10,000 per month.

Thanks,

paul
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chcvending
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Re: Charity linked vending -- when does it become unethical

Post by chcvending »

I have nothing against charity "branding" ..... I was just wondering when does it become unethical .(which you have answered partially :) )

I understand about operators needing to make a profit and if raising money for charity boosts sales thats all well and good but what about the sites commission ( after all I am one in the making ) ? The site might not want to donate to H4H.... I guess 10% of gross sales is reasonable and I would have no problem with that but if the site wants to contribute all their commission to a charity they believe in then 30% would be realistic and good for everyone.

As you know I am very new to vending ..... I came into this after having a full frontal labotomy followed by several blows to the back of my head with a bowling ball ....... Im thinking I`ve joined the asylum but its all good so far :) I believe the majority of members here would act honorably and I was not stating it WAS unethical in the post title I was asking when does it become unethical. It is good to know the norm of 10% ... one would presume most sites would like to match that with part of their commission.. Hmmmm Maybe there`s hope for me yet as I do like to as questions and gob off my opinions. All constructive and informative replies are most welcome. ThanKs Paul

Regards Shaun [url]http://chcvending.co..uk[/url]
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Re: Charity linked vending -- when does it become unethical

Post by Rossi fan »

Hi Shaun,
Think firstly about making a healthy profit for yourself and creating a sustainable business. When you have done this and if you are raising money for a particular charity, you will naturally raise more. Forget 30% commission, as it is not sustainable in £1 vending.

Thanks,

Paul
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Re: Charity linked vending -- when does it become unethical

Post by PGBrew »

Shaun,

I think you have a missunderstanding here, the norm is either:
10% charity donation or 20% commission, not both.

Pete
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Re: Charity linked vending -- when does it become unethical

Post by Paul@HurleysFoods »

Some charity box companies express their donations as a percentage of their profits. Some say 67% of their profits go to the charity. The one I know of who expresses it this way, actually pay 10p from each bag. The 67% isnt a lie, its just a different way of expressing the figure.
We choose to say 10p per bag, 20 cents in Ireland. This is 10% of the sale price of the bag, but represents a signiicant percentage in profit terms if expressed that way.
10p doesnt sound alot, but its what is sustainable for the honesty boxes.
Regards, Paul.
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Re: Charity linked vending -- when does it become unethical

Post by Paul@HurleysFoods »

BTW, we charge the 10p on every bag as it leaves the warehouse. That way the charity get 10p for every bag produced and sold by us. That is monitored by them and paid regularly. We find its the best way as accountability and transparency is 100%.
The charity must be the winner. If its done this way, I dont see it becoming unethical at any point.
Whatever charity it is thats represented has the final say over all marketing, design etc so is always in control of their "brand" which is what the bigger charities are now viewed as - Help for Heroes being a prime example of this.
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Re: Charity linked vending -- when does it become unethical

Post by PGBrew »

I've made this comment before, 67% of profit means nothing and I thought that it was against the Charity Commission's regulations. 10p per bag is good, it's finite, quantifyable etc. Well done ,Paul!

Pete
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