Gifts That Give More Than Once - Brief Article

Kiplinger's Personal Finance Magazine, Dec, 2000 by Ronaleen R. Roha, Erin Burt, Josephine Rossi

CHARITY | When you buy from these CATALOGS, you also support nonprofit causes.

MANY HOLIDAY catalogs offer you more than a chance to buy a gift: They allow you to help nonprofit groups raise money for a worthy cause. But how much of what you spend on such items actually supports the cause you care about?

The answer is, it depends. A group can receive a small slice or a big chunk of the purchase price. The Astronomical Society of the Pacific, which promotes astronomy education, says it typically receives 10% to 12% of the purchase price on each item it sells. At the other end of the spectrum, several groups--such as Appalachian by Design (ABD), which runs a job-training and marketing program for knitters in the mountains of Appalachia--say they receive 70% or more of the purchase price. The Heifer Project International is unique: The livestock you buy, from a flock of chicks to water buffaloes and llamas, is sent directly to impoverished families all over the world.

Selling holiday gifts is more than a way to raise money. It allows a group to spread the word about its mission in its catalog and on its Web site, and often in every shipment. In some cases, such sales are part of the mission itself. For ABD, selling the folk-art Christmas stockings, pillows and baby wear that its knitters produce is a key part of the mission. Says ABD president Diane Browning: "Job training would be pointless without the marketing end of the operation."

Other examples include SERRV International, which buys crafts from artisans from many countries for about 36% of the catalog price (much more than they would receive from traditional commercial buyers) and which trains the artisans in business practices. SERRV also pays the artisans in advance so that they can buy materials without going into debt.

Sell themselves. The groups in this list all run their own retail sales operations, printing the catalogs and buying, warehousing and shipping goods themselves (or through a fulfillment company that takes and fills orders) rather than handing over their name to a licensing company in exchange for a flat fee.

Every group displays products on the Web (though printed catalogs may contain additional items), and all but Appalachian by Design, Better Homes Fund and Habitat for Humanity will let you order online with a credit card.

Note that when you buy an item from a nonprofit group, you are generally paying fair market value, which means you can't take a charitable-contribution deduction on your taxes for any part of your purchase. The exception is when the gift goes directly to the nonprofit organization, such as with the Heifer Project International.

Appalachian by Design (800-865-7778, ext. 11; www.abdinc.org; no catalog, online only) sells knitted folk-art Christmas stockings and pillows. More than 70% of the price of each item goes to the charity.

Astronomical Society of the Pacific (800-962-3412; www.aspsky.org) sells astronomy books, posters, a CD-ROM with views from the Hubble space telescope and a moon globe. 10% to 12%.

Better Homes Fund (800-962-4676; www.tbhf.org; no catalog, online and in November and December issues of Better Homes and Gardens magazine) sells fresh balsam wreaths, Christmas hams, bird feeders and holiday candle centerpieces. About 50%.

Caribbean Conservation Corp. (800-678-7856; www.cccturtle.org; no catalog, online only) sells sea-turtle jewelry, educational videos, books and plush sea turtles. About 75%.

Habitat for Humanity (800-422-5914; www.habitat.org) sells tool-themed jewelry, photo frames, Habitat-logo clothes and a house-shaped night light. 40% to 70%.

Heifer Project International (800-696-1918; www.heifer.org) lets you help fund the donation of livestock to impoverished families worldwide. About 75%.

National Wildlife Federation (800-477-5560; www.nwf.org) sells holiday cards, animal-patterned throws and clothes, gold-dipped leaf tree ornaments and toys. 5% to 20%.

Save the Children (800-600-8019; www.savethechildren.org) sells holiday cards by kids, kid-patterned silk ties, international bean-bag dolls and a teacher pin. 50% on average.

SERRV International (800-422-5915; www.serrv.org) sells Mexican "alpaca" (nickel-silver) jewelry, native musical instruments and an Indonesian tall-ship kite. At least 36%.