The AmazonSmile Foundation is a 501(c)(3) organization created by Amazon to administer the AmazonSmile program. This program allows customers to enjoy the same Amazon online shopping experience as the traditional Amazon online shopping platform, but now with the option of donating 0.5% of eligible purchases to various charitable organizations. The AmazonSmile program charges no additional cost to either the charitable organization or the customer. The new foundation from Amazon or rather, the online, charitable donation platform, represents a positive, philanthropic step forward for the company. This initiative has the potential to reach millions of Amazon users and hopefully, even more of the world’s poor will benefit.

How it Works

Signing up for AmazonSmile is a highly intuitive process for customers. It is available on any web browser under the URL: smile.amazon.com and it can even be activated from the Amazon shopping application. One of the program’s main features is that customers can choose the specific nonprofit to which they want to donate. Moreover, the online, charitable donation platform offers more than 1 million charitable organizations to choose from.

The charities included in the program must pass an approval process to guarantee that the customers’ donations only fund reputable organizations. Organizations hold valid registry and remain in solid standing with the IRS as a 501(c)(3) (also known as a registered nonprofit). Only then are charitable organizations eligible to register on AmazonSmile. Additionally, foundations must be public and located in either the U.S. or Washington D.C.

Yet, after all of this information, an important question remains — why are some Amazon customers hesitant to use this program when shopping?

The Problems with AmazonSmile

Enabling AmazonSmile seems like a simple way to help others. However, the program has already received some criticism. Since the donation is only 0.5% of a customer’s eligible purchase order, a customer would have to spend $5,000 on Amazon to donate just $25 to the organization of their choice. When taking a closer look at consumer spending, it is clear that this purchase-to-donation ratio is not necessarily skewed in favor of Amazon’s online charitable donation platform (and thus, the charities). For example, in 2018 Amazon Prime members only spent an average of $1,400 on purchase orders. Moreover, the purchase order value (on average) for consumers who were not Amazon Prime members was even less, at $600.

In 2015, the AmazonSmile Foundation donated just less than $13 million to charitable organizations. Although this figure undoubtedly represents a substantial amount of money, the fact remains that the company’s contribution was still less than 0.5% of Amazon’s total retail sales for that same year. The program donated about 0.00012% of Amazon’s total retail sales in 2015. Given Amazon’s extreme level of success, many people criticize the program for its minuscule donations (in proportion to the company’s total retail sales).

A Silver Lining

Regardless of its flaws, the AmazonSmile Foundation holds the potential to provide a simple way to substantially give back to charitable organizations. For those who want to make small contributions, often — transitioning to AmazonSmile is an effective way to accomplish philanthropic, retail goals while making a positive impact in the fight against world poverty.

– Danielle Wallman
Photo: Google Images