Chapter 4: Why Not?

[Founder (Greg Unruh)]

There are several adjectives that describe GiveWithoutGiving.org's "One Block at a Time" program:

* New
* Unique
* Revolutionary
* Innovative

A handful of folks have offered some candid feedback that in turn prompts this blog entry. I think the words above can be a little scary to some people. No one wants to be "first" or one of the "early adopters" of a new program. I think they would just as well see someone else try it for awhile before deciding to take the plunge themselves. Most people make decisions based on level of risk. So what are the risks? What's the absolute worst thing that could happen by registering for a FREE virtual billboard? As mentioned, the program is absolutely FREE...so there's really nothing to lose! The worst thing that could happen is that you simply decide not to continue with the program. When you register for a FREE virtual billboard, you get a unique URL (a pointer to your new virtual billboard) that you can link to from within your existing website and/or promote through newsletters and other distribution channels. If you decide the program is not for you, simply remove the link from your website and stop promoting the program. When you think about it, the worst thing that could really happen is that someone might actually purchase space on your virtual billboard, and you earn a little money for your cause.

It's not my intent to take a defensive position, but rather to offer further explanation to eliminate any confusion regarding allocation of funds. I entirely understand that some people may question GiveWithoutGiving.org's policy to retain 10% of every purchase to cover operational costs. I have the same thoughts when I make a donation to a recognized charity. How much of my contribution is really going to benefit the intended cause? We're all aware of the stories where we find very little of our donated money actually goes towards the cause it is intended for. In most cases, you really don't know how your money is being allocated. It's for this very reason I feel it's important that I offer this deeper explanation.

If you're interested in the truth about charitable contributions as they relate to most nationally recognized organizations, visit http://www.charitynavigator.org/. The difference with GiveWithoutGiving.org is that we're upfront and honest with how your money is being allocated. The recipients of our donations are the virtual billboard owners themselves; so inherently they have the ability to audit the donations they receive. If you're the owner of a virtual billboard, it's pretty easy to figure out if you're getting your 90% or not. Simply add up the total number of blocks sold on your virtual billboard, and measure it against your donated funds from GiveWithoutGiving.org. It's easy math! If the numbers don’t add up, then we would be committing fraud that would most certainly result in monetary consequences and likely imprisonment. As blunt as this may sound…if you go back to "Chapter 1" of my Founder's Blog, you'll clearly see my motivation isn't to go to jail. Our goal is to to help people, and we want to do it in a genuine and honest way.

Okay...so what happens with that 10% we're withholding from every purchase on your virtual billboard? We use PayPal to process our credit card transactions. PayPal charges us a 2.9% + $0.30 per credit card transaction. So with a minimum $10.00 purchase, GiveWithoutGiving.org retains $1.00. Of that $1.00, PayPal chews up $0.59. That leaves $0.41 left to cover technology enhancements, hosting fees, promotional expenses, and human capital costs. Now based on participation and volume, we could potentially generate more revenue than what is required to cover our operational costs over an extended period of time. This is why we have established fixed budgets for these items. If we generate more revenue than what is required to cover our operational costs, we apply the surplus to our General Relief Fund. This fund is designed to offer financial relief to randomly selected people experiencing financial challenges as a result of an event or condition outside of their immediate control. A recipient could range anywhere from an individual struggling with an illness to a family who has lost everything due to a natural disaster.

So back to the original question, "Why not"? Jump in and give it a go!