End of Charity: Amazon Puts an End to AmazonSmile Program Amidst Other Cost-Cutting Measures

Before dawn on March 29, 2021, in Bessemer, Alabama, a glimpse of an Amazon fulfillment center is captured. However, the behemoth of online commerce is now revealing its intention to terminate the philanthropic venture called AmazonSmile.

The announcement came on Wednesday, declaring that Amazon will cease its charity donation program by February 20. This decision follows a chain of cost-cutting measures implemented by the company.

Since its establishment in 2013, the AmazonSmile initiative has dedicated itself to contributing 0.5% of eligible purchases to the charity of each shopper's preference. Impressive figures from Amazon reveal that this altruistic endeavor has resulted in more than $400 million graciously bestowed upon U.S. charities and over $449 million disbursed globally.

In a letter to customers, Amazon acknowledged the staggering scope of eligible organizations, with a count surpassing one million worldwide. However, the company lamented that this vast dispersion diluted the potential impact it sought to achieve.

Providing insights on the program's statistics in the U.S., an Amazon spokesperson informed NPR via email that the average charity donation per organization in 2022 amounted to $230.

Nevertheless, numerous organizations, particularly small ones, cherished these donations as they proved to be immensely beneficial. The social media realm has become a platform for AmazonSmile users to express dismay over its discontinuation while sharing stories of how the program transformed the destiny of the charitable causes they hold dear.

One such example is the Squirrelwood Equine Sanctuary, a sanctuary for farm animals and horses nestled in New York's Hudson Valley. Reflecting on their experience, they tweeted that the sizable sum of nearly ,400, received from AmazonSmile, brought about a monumental difference to their cause.

Beth Hyman, executive director of the sanctuary, underlined the significance of these regular contributions, making mention of quarterly installments in the range of a few thousand dollars. Although this amount may appear trivial within the larger budget, Hyman emphasizes that it goes a long way, capable of sustaining an animal's livelihood for an entire year. This irreplaceable support now hangs in the balance, with doubts surfacing about the sanctuary's future viability.

Hyman pointed out the lack of advance notice provided by Amazon regarding the termination of AmazonSmile. She expressed frustration about Amazon's minimal integration of the program into their mobile applications, effectively concealing it behind an elusive URL.

CASA of Central Texas, an organization devoted to training volunteers to advocate for children within the child welfare system across four counties bridging Austin and San Antonio, is another valuable nonprofit that had found support through AmazonSmile. Eloise Hudson, the group's communications manager, noted that although CASA operates on a national scale, it relies on localized grassroots efforts to secure funds. Hudson mourns the loss of AmazonSmile since it empowered individuals to contribute to smaller charitable organizations. This avenue for support will soon be extinguished.

In a gesture of goodwill, Amazon pledges to assist charities in transitioning from AmazonSmile by providing a one-time donation equivalent to the sum earned through the program in 2022 for a period of three months. Charities will continue to receive donations until the official termination date in February. The company suggests that shoppers can still contribute by purchasing items from a charity's wish list. Additionally, Amazon affirms its commitment to supporting other initiatives, including affordable housing programs, food banks, and disaster relief efforts.

It is worth noting that Amazon had previously unveiled its Housing Equity Fund, designed to invest in affordable housing. The focus of this endeavor lies in areas where Amazon's headquarters have had a disruptive impact on local housing markets. Several programs mentioned in the announcement are confined to Amazon's internal operations.

During the initial month of the year, the Chief Executive Officer of Amazon, Andy Jassy, made a significant pronouncement regarding the termination of employment for a staggering 18,000 individuals. This announcement stands as a remarkable event in the history of the company, as well as marking the highest number of job reductions observed within the technology sector since the commencement of the industry's decline in the preceding year.