December 21, 2009 | Read Time: 1 minute
People are buying less on eBay, but they’re donating more.
The online-auction site reports that its Giving Works program has generated $50-million for nonprofit groups this year, a 17 percent increase over 2008. Sales on the Web site, meanwhile, have dropped.
The uptick in donations is good news for charities and another sign of the continued growth in giving online.
eBay’s program works in a number of ways: Sellers can designate a charity to receive a portion of their sales; buyers can choose to give when they make a purchase; and charities can use the site to sell goods.
While the overall amount raised for charity this year was significant, individual donations made through the site tend to be tiny. The average donation this year was $2.28, a drop from $4.08 in 2008.
But a handful of charities have found ways to unlock big money on eBay’s Giving Works program.
The Blind Center of Nevada, for example, has raised more than $1.2-million by collecting “e-waste” such as old computers and monitors and eventually selling the equipment through the Web site. The money makes up more than two-thirds of the charity’s revenue.
Robert Chatwani, eBay’s head of global citizenship, says the growth is due in part to the company’s efforts to make it easier for people to give, for example by introducing at the end of last year its “give at checkout” option for buyers.
“Historically, decisions about the things you buy and where you shop were discrete from the decisions about how you donate,” he says. “We’ve found that bringing those together can help you make better choices. We’ve seen this really take off.”
