Amazon is discontinuing its decade-old philanthropic program, AmazonSmile, which allowed customers to donate 0.5 percent of the cost of their purchase to select charities.

Since launching in 2013, AmazonSmile has funneled $500 million to participating charities. The company said the program wasn't having the impact it had hoped.

"The company will continue to pursue and invest in other areas where it can make meaningful change— from providing support to families in need, to using our logistics infrastructure and technology to assist communities impacted by natural disasters," Amazon said in a press release.

While the program will end by February, Amazon will provide participating charities the equivalent of six months of what they earned through AmazonSmile. Those charities will also be able to seek donations from Amazon customers through their own wish lists.

The company also highlighted other charitable initiatives, such as Kind Direct and the new Amazon for Charity store. The former provides goods directly to charities, and the latter allows charities to sell goods on Amazon and collect 100 percent of the profits.

"We’ll continue working to make a difference in many ways, but our long-term commitment to our communities remains the same: we are determined to help create a better world for our customers, our employees, and the communities we serve across the country," it said.

In addition, AmazonSmile's type of philanthropy, often called point-of-sale or checkout charity, has gotten backlash in recent years.

CVS is currently facing a lawsuit charging that it used checkout donations to fund a $10 million commitment to the American Diabetes Association, whereas the company had allegedly given customers the impression that their donation would supplement an initial pledge.

The announcement also comes as Amazon tries to streamline its business amid an industry-wide downturn for tech firms. The ecommerce giant this week laid off 2,300 workers in Seattle and Bellevue. 

Share:
More In Business
A US tariff exemption for small orders ends Friday. It’s a big deal.
Low-value imports are losing their duty-free status in the U.S. this week as part of President Donald Trump's agenda for making the nation less dependent on foreign goods. A widely used customs exemption for international shipments worth $800 or less is set to end starting on Friday. Trump already ended the “de minimis” rule for inexpensive items sent from China and Hong Kong, but having to pay import taxes on small parcels from everywhere else likely will be a big change for some small businesses and online shoppers. Purchases that previously entered the U.S. without needing to clear customs will be subject to the origin country’s tariff rate, which can range from 10% to 50%.
Southwest Airlines’ new policy will affect plus-size travelers. Here’s how
Southwest Airlines will soon require plus-size travelers to pay for an extra seat in advance if they can't fit within the armrests of one seat. This change is part of several updates the airline is making. The new rule starts on Jan. 27, the same day Southwest begins assigning seats. Currently, plus-size passengers can pay for an extra seat in advance and later get a refund, or request a free extra seat at the airport. Under the new policy, refunds are still possible but not guaranteed. Southwest said in a statement it is updating policies to prepare for assigned seating next year.
Load More