BellaOnline Forums Hobbies and Crafts Crochet Why do businesses profit on disasters???

Let me preface . . . I'm a long-time lurker in the crochet and knit threads (but I love knitting better). I also do taxes for a living. I also care very deeply about the catastrophy that is happening to our brethren in the South right now - I was born in Louisiana in 1968. This is my dilemma:

I got an email from one of my favorite on-line yarn stores yesterday - WEBS ( http://www.yarn.com/index.html ) - saying they would donate 10% of new orders towards Katrina relief.

I don't understand at all. If I have $100.00 that I send to them, then they make $90.00 and $10.00 goes to any victims. Why in the world wouldn't I just send my original $100 directly to a charity?

First of all, bear in mind that I've spend hundreds of dollars there already, this year alone. So, why don't they donate 10% of the money I've already spent?

Why do they need to make MORE money in order to donate?

Also know that the 10% donated is not something *I*, the person that originally gave the money, can deduct as a charitable contribution. That 10% can now be claimed by WEBS as a donation on THEIR books, to lessen THEIR income. I can forego the need for a deduction . . . that's not why I give. I just can't understand why a business would use this horrible event to 1) make more money, and 2) use the deduction to lower their taxable income.

Who wins in this case? The victim that gets the paltry 10% of the total given? The buyer that gets NO deduction, yet really spent the money? Or the business that makes more money in the name of 'charity' ??

I won't take offense to any responses. Just know I'm not knocking the concept of "charity", and "helping out our fellow man". I'm questioning how *generous* WEBS really is when we look at the truth behind their largesse.

April

Actually, many businesses do this for PR purposes. Of course, they do want you to buy from them, but they hope you'll appreciate that they are making a donation. And, many times, 10% of many purchases does add up. It would be a much better move if they donated their own money, PLUS an added 10% of future purchases, of course.

The thinking is that you're going to buy from businesses you like or do business with anyway, and this way they can build some goodwill by "giving back".

I am going to stick with my believe that honestly they want to help and this is their way of doing it. I am not associated in any way with Webs but I kinda think they are doing quite well business wise (remember this is just a guess and I don't know for sure).

I think at this point there are alot of people wanting to help and so they are doing their best to accomplish that. Again I like to think the BEST of everyone until they show me their worst <img src="/images/graemlins/smile.gif" alt="" />