When Stopping Is the Right Strategy

This week, Amazon announced the termination of its AmazonSmile program, which enabled shoppers who used a specific link to make purchases to see a very small portion of their purchase payment donated to that charity. David Norris gives a great summary of the announcement on LinkedIn.

But this brings up an important strategy question for nonprofit executives.

Amazon reported that AmazonSmile paid out an average donation of $230. That’s not an annual figure, it’s the total amount given over a decade. This means that for the majority of organizations, AmazonSmile represented extremely low-cost advertising for Amazon and also a net negative financially for nonprofits when you consider the staff time committed to promoting it. This is likely true even for organizations that received 4-figure donations from this program.

“Free” ways of fundraising are never free.

AmazonSmile was massively popular - and nonprofits lost money on this program.

As a leader, it may feel harmless - or even important - to have your staff spend time on “free” programs like these. But what’s the trade-off? What else could they have been working on that would drive more value for your organization and your community?

A week ago, I asked nonprofit executives - “what are you leaving out this year?” Articulating what you won’t do is an essential part of strategy.

AmazonSmile has already put itself on your 🛑 Stop List.

What other net negative or low-value activities will you choose to stop this year so you can redirect your team to more meaningful, impactful, and fruitful work? Join the conversation over on LinkedIn.