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  Reply # 1600811 29-Jul-2016 14:19
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dafman:

 

Somewhat ironic, me thinks, that Spark virtually have to give Lightbox away for free, but will soon start charging for their charitable arm (-;

 

 

 

 

They could just close it 





Mike
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  Reply # 1600830 29-Jul-2016 14:45
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Givealittle is funded by the Spark Foundation.

 

I don't see details on their website of how much direct funding comes from Spark.  It looks like a significant amount comes from voluntary payroll donations from Spark employees, but that Spark also pay employees to work in charitable ventures.

 

@MikeB4 - sure there's some validity to the argument that you're putting forward - that it (the charity) is doing good and they could just close it.  

 

I'm less comfortable about them adding a fee, I expect that the major cost would have been setting it up, ongoing costs once it's established less.  It's now established and has earned Spark considerable kudos due to the apparent charitable contribution by Spark.  They reject advertising as a source for revenue on the site - as they seem to want to take the whole stage as "Spark".  Other organisations can join in, but even if they get some mention somewhere, it's very much under the banner of Spark, and therefore rather less charity and rather more a public relations exercise in my opinion.

 

I don't compare it with say the Gates Foundation as an example of "corporate charity" - or using the same model that would have been called the "Microsoft Foundation"and funded by a tithe on MS employees.

 

 




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  Reply # 1600831 29-Jul-2016 14:45
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MikeB4:

 

dafman:

 

Somewhat ironic, me thinks, that Spark virtually have to give Lightbox away for free, but will soon start charging for their charitable arm (-;

 

 

 

 

They could just close it 

 

 

A new site would quickly fill the void left if they did.

 

Probably sponsored by another large corporate, or collection of.

 

Maybe even by a company prepared to meet the full cost internally. After all, $1.7m could be considered a reasonable commercial investment for generating significant positive goodwill in the community for your brand.


BTR

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  Reply # 1600874 29-Jul-2016 15:10
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Surely the money that Spark spend on maintaining the site can be claimed back form their taxes as being a donation to a charity? Give a little is run by the Spark Foundation not Spark.

 

 


gzt

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  Reply # 1600877 29-Jul-2016 15:18
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They are hiring specific staff for Spark Foundation, marketing, customer service, etc. Pretty obvious Spark want to put it on a firm standalone footing. Yeah would be nice if they covered all costs and the banks could do the same.

Basically a conflict for Spark to try funding it from advertising or other forms of 3rd party relationship. Well you know not a conflict just confusing for other parts of the business.

Plenty of room there for a zero fees model if someone wants to try it.

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  Reply # 1600891 29-Jul-2016 15:52
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BTR:

 

Surely the money that Spark spend on maintaining the site can be claimed back form their taxes as being a donation to a charity? Give a little is run by the Spark Foundation not Spark.

 

 

 

Sponsorship is a deductible cost.  Spark can deduct it from their costs to reduce their taxable profit.  So they save about 30% on their tax bill.  That applies to almost all sponsorship.

 

The fact remains based on last years numbers, Spark is contributing a net amount of $600,000 pa to the running of GAL.  And somehow a number of people are knocking them for that.

 

 





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  Reply # 1600892 29-Jul-2016 16:01
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Myself and my wife have spend countless days working for charitable organisations and voluntary social services over the years. I can attest that fund raising is a very hard and very time consuming task that charities have to spend a lot of time doing, time that could be spent doing the real job they trying to do. We appreciate all and any assistance that can be given. It is fantastic that companies like Spark step and fund in the way they have with the Spark Foundation and Give a little and they are to be commended.





Mike
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 It's our only home, lets clean it up then...

 

Take My Advice, Pull Down Your Pants And Slide On The Ice!

 

 


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  Reply # 1600905 29-Jul-2016 16:23
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dafman:

 

I reckon it pretty disappointing that Spark are proposing to clip 5% off future ‘Give a Little’ donations to go into their corporate coffers.

 

Take, for instance, the recent $2+ million gifting towards the public purchase of the Abel Tasman beach. This would have seen $100,000+ going into Spark’s corporate coffers for this one campaign alone.

 

 

While it's not possible to know what sort of rate Spark have for credit cards and whether it's blended or non blended not do we know what % of people pay by credit card (but I suspect the answer is the majority) Spark could have easily paid out anywhere in the $30,000 to $40,000 range or potentially even higher just in credit card fees for this campaign. Not all the money goes into Spark's coffers.

 

 

 

 

 

 


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  Reply # 1600906 29-Jul-2016 16:30
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Just to clarify ....  money from GAL will not go into 'Spark's coffers'.  The 5% fee will be used to cover about 2/3 of the operatings cost of GAL, with the remaining 1/3 contributed by Spark. 

 

So money will be transferred from "Spark's Coffers" to GAL.





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  Reply # 1600907 29-Jul-2016 16:32
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I can understand them charging, and charges usually only head one way. What I like about Givealittle is that you can make anonymous donations, and I think it is a good concept. However they probably should have charged from the very beginning. It is sort of using the free model to build up the client case, and then moving to a paid model, once they have built up that customer base. There are other similar overseas systems that also charge a percentage. I would be more comfortable if the fees were more transparent, and they showed what their outgoings were, and whether they are able to cut costs by trimming the fat. Maybe these are published somewhere. Some charities do have a lot of fat they could trim, especially in marketing and collection, and even some collectors these days seem to get paid. Also some charities to have their own 'CEO', and with that title can include a large salary.

 

I think people liked Givealittle, because all the donation when to the recipient. Many families also setup givealittle pages, for things such as sending someone overseas on a international sports event etc. So if they want 100% of the money from their family, they may be better to contact them directly. $100 on a $2000 trip is quite a bit of spending money.

 

 


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  Reply # 1600920 29-Jul-2016 16:56
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dafman:

 

Somewhat ironic, me thinks, that Spark virtually have to give Lightbox away for free, but will soon start charging for their charitable arm (-;

 

 

 

 

They still charge everyone except Spark broadband customers. Maybe on paper it gets paid out of Sparks marketing budget, and is a point of difference and it has helped them keep customers, so it is helping Spark to include it. Also it keeps their subscriber numbers high.

 

I think if everyone paid their fair shared of taxes, and the property market had been taxed over the last decade for all the capital gains it had made, we wouldn't have the need for so many charities in NZ, and all the hangers on. Many now seem to be for things that the government should fund. Ambulances for example, should be taxpayer funded, as it is an essential service. Luckily in Wellington they are 'free' but most will give a donation when they use them, as it is a charity.


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  Reply # 1600922 29-Jul-2016 17:01
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Maybe I just don't understand how charities work here, but I still have a problem with all the charges going to for-profit companies. I'm not picking on Spark, but we are talking about charities. So why are so many making a living off this? Why do people need to get paid to help out a good cause?

 

 

 

 





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  Reply # 1600938 29-Jul-2016 17:19
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MikeAqua:

BTR:


Surely the money that Spark spend on maintaining the site can be claimed back form their taxes as being a donation to a charity? Give a little is run by the Spark Foundation not Spark.


 


Sponsorship is a deductible cost.  Spark can deduct it from their costs to reduce their taxable profit.  So they save about 30% on their tax bill.  That applies to almost all sponsorship.


The fact remains based on last years numbers, Spark is contributing a net amount of $600,000 pa to the running of GAL.  And somehow a number of people are knocking them for that.


 



They are not just spending money only to keep GAL running. It's also money spent to promote the Spark brand in the community. Why do you they launched it in the first place?

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  Reply # 1600940 29-Jul-2016 17:29
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dafman:
MikeAqua:

BTR:


Surely the money that Spark spend on maintaining the site can be claimed back form their taxes as being a donation to a charity? Give a little is run by the Spark Foundation not Spark.


 


Sponsorship is a deductible cost.  Spark can deduct it from their costs to reduce their taxable profit.  So they save about 30% on their tax bill.  That applies to almost all sponsorship.


The fact remains based on last years numbers, Spark is contributing a net amount of $600,000 pa to the running of GAL.  And somehow a number of people are knocking them for that.


 



They are not just spending money only to keep GAL running. It's also money spent to promote the Spark brand in the community. Why do you they launched it in the first place?


I am not sure of your motives or what you would like to see happen.




Mike
Retired IT Manager. 
The views stated in my posts are my personal views and not that of any other organisation.

 

 It's our only home, lets clean it up then...

 

Take My Advice, Pull Down Your Pants And Slide On The Ice!

 

 


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  Reply # 1600941 29-Jul-2016 17:32
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Rikkitic:

 

Maybe I just don't understand how charities work here, but I still have a problem with all the charges going to for-profit companies. I'm not picking on Spark, but we are talking about charities. So why are so many making a living off this? Why do people need to get paid to help out a good cause?

 

 

 

 

OK. For starters, Givealittle itself is not in itself a charity, it is merely a crowdfunding platform which individuals, charities and the like can use to get their cause 'out there' and provide an easy (and safe) way for people to donate to causes that they see as worthy. Running this platform has costs. Costs that until now have been covered by the Spark Foundation. Given the marked increase in use of the platform in recent years those costs have undoubtedly gone up.

 

 

 

This from the Givealittle website:

 

"Givealittle Chief Giving Officer Tom Beyer says “Givealittle’s success has been phenomenal – in the last three years, the amount that individuals, charities and communities have raised through the site has grown from $500K per year to $22M a year. This comes at a cost  – so we need to cover the expense of the work we do everyday in keeping the site running, and improving the giving experience.”

 

The introduction of a 5% fee is about supporting and enabling growth and there is no intent to make a profit from Givealittle. The new fee will cover some of Givealittle’s costs - specifically payment processing and website hosting (which are both outsourced), and staff for customer service and website development.

 

The introduction of fees will not cover all of Givealittle’s costs and our owner, the Spark Foundation, will continue to make a significant contribution to these costs."

 

 

 

As far as I can see the Spark Foundation are still doing their bit for "the public good" by still covering approximately 30-35% of the costs (from September 1) of running this platform. As I see it, 5% is a small amount to pay for the exposure and ease of use of Givealittle. Anyone who doesn't agree is obviously still able to try and collect donations directly from people but I imagine doing so will either:

 

A - Not collect as much money

 

B - Have administration costs in doing so

 

C - Both of the above

 

 

 

I guess if some other company or person wants to do the same kind of thing but charge no fees then they should go right ahead. Probably won't be any takers though...


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