Key takeaways:
- Amazon (AMZN) has announced the closure of its charity donation program, AmazonSmile, by February 20.
- Since its 2013 launch, $500 million has been donated, with an average donation of less than $230 per charity.
- Charities enrolled in the program will get a one-time donation “equivalent to three months of what they would have earned through AmazonSmile.”
Amazon (AMZN) has announced that it will be shutting down its charity donation program, AmazonSmile, by February 20. The program, which has been running for a decade, has not grown to create the impact that the company had originally hoped.
In a blog post on Wednesday, the company said that with more than 1 million eligible organizations globally, their ability to have an impact was often spread too thin. Amazon added that since its 2013 launch, $500 million has been donated, with an average donation of less than $230 per charity.
The program allowed Amazon to donate a small percentage of eligible purchases to a charity selected by shoppers. Charities enrolled in the program will get a one-time donation “equivalent to three months of what they would have earned through AmazonSmile.”
The move is part of Amazon’s cost-cutting strategy as the company looks to reevaluate its strategy. The company has not yet announced what other initiatives it may be looking to cut.
AmazonSmile has been a popular program for many charities, and its closure will be felt by many. It remains to be seen what other initiatives the company may introduce to replace the program.
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