Franks: Small donations add up to a difference
Published 5:00 am Sunday, October 6, 2024
- Dawn Franks
At the end of the checkout process, a PetSmart screen in front of me always asks if I want to donate to PetSmart Charities. And, as the holiday season grows near, the clerk asks me to purchase a plush toy for hospitals, senior centers, homeless shelters, and more.
It’s a fast ask and a fast decision. The first decision, donating cash along with my purchase, is considered a microdonation in philanthropy.
Microdonations are on the rise thanks to technology. They make giving easier – almost thoughtless, but not guilt-free – for the everyday donor like you and me.
So, there we are at the check stand, ready to cross this chore off our to-do list when the donation screen appears with options to give. I know the first one is now $2. Not too long ago, it started at $1; that’s inflation for us.
I’m unsure of the second and third options, a signal that my brain has accepted the $2 gift as reasonable. Sometimes I check it. Other times, I pass on the opportunity while wondering about the total of my PetSmart giving over the years. That fleeting question is my defense mechanism kicking in to ward off images of abused animals.
The trigger for this rabbit hole I’m heading down was an article suggesting that nonprofit organizations find more ways to tap into microdonations and increase everyday donor gifts. And then, I started thinking about the rounding-up-up opportunities I’ve recently experienced. With so many options, our total giving must be significant.
One alarming statistic from a 2021 study from the Indiana University School of Philanthropy about our annual giving is that the share of households giving to charity dropped from two-thirds to less than half in recent years. Today, our giving story hasn’t improved, with Americans giving 2.1 percent less in 2023 than in 2022 (Giving USA 2023 Annual Report).
One suggestion for our decline in reported giving is the rise of microdonations. So, I am right back at the checkout stand, making a fast decision. Today, the everyday donor in me started wondering just how much PetSmart raises every year in this fashion.
A few facts from my rabbit-hole research: PetSmart Charities, Inc. is a tax-exempt nonprofit organization managed by the PetSmart corporation. A review of their tax form on Guidestar.org reveals that they raised $55 million from contributions and grant sources. Our cash register gift is some portion of that number.
Unfortunately, there is no current way of tracking microdonations with so many ways to give, from checkouts to Internet fund me sites.
I do want to point out that the tax form also indicated that PetSmart’s grants and assistance to nonprofit organizations in 2023 were more than $44 million. According to their website, their focus is on pet adoption assistance and veterinary access programs.
One last giving number to note is that PetSmart has donated more than $639 million across the country over the last thirty years. It’s unclear from the tax form what the plush toy value is, but it may be as high as $5 million (listed as “other revenue”) in 2023. That’s a guestimate on my part reading the tax form, so please don’t quote me.
You can easily check out their tax form at Guidestar.org. While there, you can look up the recent tax forms – IRS 990 reports – for any tax-exempt charity or private foundation in the country.
As everyday donors, our microdonations add up. We come from all walks of life and demographics. Microdonations reach the donors among us who are less engaged but whose dollars are just as important as mine. According to Victoria Vrana, CEO of GlobalGiving, it is our way of “democratizing philanthropy,” a very important and truly American concept.
So, the next time you’re at the check stand making that fast decision, ask the clerk where the funds are going. If she doesn’t know, look for a manager. Don’t be shy about asking, because you asked she might be motivated to find out for the next everyday donor. At PetSmart, grants save homeless pets and help Americans on a limited income who need help with veterinary services.
Our fast giving makes a difference. Learn how by asking questions the next time you round up.