Micro donations for charities with Beanstalk Giving

Speaking to a CSR Consultant recently, the CSR Digest confirmed that personal donations amounted to the majority of funding for charities. And even more money could be available if only micro donations could be leveraged. Beanstalk Giving (BG) saw this need and designed an API which helps E-Tailers round off purchases, allocating the balance to a charity of the purchaser-cum-donor’s choice.

BG’s founder, Ross Williams, started the venture “with a desire to connect a few specific groups in a way that met a need for each”. With Ross’ help, Beanstalk Giving offers consumers an opportunity to make micro donations to charities when shopping online with BG e-tailer Partners.

The CSR Digest caught up with Ross online on Skype.

CSRD: Hi Ross, Daniel from the CSR Digest here.

Ross: Hi Daniel. How are you this morning, afternoon?

CSRD: Night. 10.15 pm. What time is it there?

Ross: I’m in Paris, so it’s 4:16 in the afternoon

CSRD: How’s Paris? Been awhile since I’ve been there.

Ross: Wonderful, as always. Glad we were able to connect on Twitter.

CSRD: Yes, Twitter is great! A few of my associates and I are fascinated with Beanstalk Giving. Was wondering if you’d like to have an interview for the CSR Digest?

Ross: I’d love to. For now, we’re trying to find e-tailers in North America who like the idea and want to partner. Have not thought too much about Asia and other parts of the world. Would love to get that far though.

CSRD: The thing is that CSR in this region is only just beginning to get out of the philanthropic mould.

Ross: And that seems to be the case everywhere. We have a long way to go to convince companies that we care about the good they do. But as the world turns, there is always room for improvement. We need to make sure we keep the momentum to making the world a bit better.

CSRD: How old is Beanstalk Giving?

Ross: Very young, just starting.

CSRD: Yet there seems to be an impetus and interest in it…

Ross: We hope. Everyone seems to think it’s a good idea. Now we need someone who has the power to implement (owner of e-commerce store). If we can find one who agrees and wants to endure the growing pains with us, for the cause then we’ll really be moving.

CSRD: Do you hold the funds until their disbursed? What’s the nature of the legal relationship between you and the beneficiaries?

Ross: The e-tailer collects all of the funds.

CSRD: And they disburse it too?

Ross: Those funds are remitted to Beanstalk Giving on a monthly basis and we distribute them to the corresponding charities.

CSRD: So it’s a simple bit of programming you add to their store?

Ross: Correct, an API. This API collects the donation information and passes it to a management database. There we can log in and see the donation happening in real time.

CSRD: What happens if the e-tailer does not give? Or doesn’t give the right amount?

Ross: We have an agreement in place that lays out the rules.

CSRD: Can the public see the donations happening too? Is it transparent?

Ross: Yes, we will release on a regular basis the amount of donations raised and which charities they went to. We will release these statements on our site.

CSRD: But what would motivate the e-tailers to release the funds?

Ross: If they don’t release the funds or not the right amount we don’t continue the relationship.

CSRD: Does it work via SMS purchases?

Ross: No, not with SMS purchases, only purchases that are done with a browser.

CSRD: For e-tailers who don’t release the funds, or release them late, would you blacklist them? Would the public know that they failed in their commitment?

Ross: We won’t partner with e-commerce stores who are not joining us for the right reasons. They can’t keep the funds that their customers have given them to be passed on to social causes.

CSRD: But there must be some protection for the donor/ shopper?

Ross: We have a legal agreement in place that prevents e-tailers from retaining the funds. If they refuse to release the funds, we obviously cancel the partnership. We won’t even get into an agreement with a company who does not see the tool the way we do. We’d make sure to represent the donors if this ever happened and do all we could to make things right. But first and foremost, we won’t be getting involved with companies who would even consider keeping the donations their customers have given them for charity. And yes, sue for the donation would be an option. But I think we’ll know which companies would consider taking change from their customers and risking their entire business for this change. They will have to release the monies at the intervals we agree on as part of the Partner Agreement. And those funds will be divided up quickly and sent out to the charities.

CSRD: Is the API patented?

Ross: It is not patented. We are a non-profit company and couldn’t benefit from patenting the technology, plus we are not hoping to prevent others of taking the idea and running with it. One of the great things about the tool is the cost to develop and the cost to operate. This is why we think we can be one of the most cost effective fundraising tools every. We are not funded, didn’t take much besides time.

CSRD: What do you see as your biggest challenge?

Ross: Our biggest challenge at the moment and for the foreseeable future is building our E-tailer Network; those who see our vision and want to partner with Beanstalk Giving by adding the API to their checkout process. It’s a relatively new idea and the online retailer industry is young, therefore there is a perceived risk in joining us. As for the donors (customers) and the charities, they are ready to see the project move forward. But, we can’t do it without the e-tailers. We plan on pushing forward by contacting as many e-tailers as possible and presenting our idea. We’re confident that there are e-tailers out there who will believe in our cause and join us in making a macro difference through micro donations.