From time to time, THREADS.GG feels the need to monetarily contribute to communities, organizations, or individuals that may have experienced tragedy. With the world today being as uncertain as it is, we feel it is our responsibility to inform our customers exactly how their donations are managed.
A general outline of our donation policy is as follows:
- When possible, we contribute to NGO’s only
- When contributing a percentage of proceeds, we contribute based off of revenue instead of profit
- When contributing a sum, whether as a result of specified proceeds or not, we will do our best to make publicly available the details involved in that sum exchanging hands
1. Preferring NGO’s
When we feel compelled to contribute in the wake of some tragedy, we believe it is our responsibility to ensure that the contribution will be properly managed. The last thing we want to do is raise money from our hardworking customers only for it to fall into ill-guided hands. To ensure that this doesn’t happen, we make an effort to perform our own due diligence around who should receive that donation. One of the best ways to accomplish this is to target NGO’s instead of for-profit institutions or individuals. NGO’s are heavily regulated by their governmental bodies and must maintain strict spending habits with stellar record keeping to qualify for their tax exemptions. In turn, these tax exemptions assist them with contributing the money they generate to those in need.
Our commitment to you is this: we will make our best effort to ensure we contribute your hard-earned donations to responsible organizations, period.
2. Revenue instead of profit
Committing a percentage of proceeds is always a tricky matter because, typically, a company’s accounting practices are opaque. One of the ways we hope to make you more comfortable with our management of your donations is to clarify exactly what that percentage will be applied to. In this case, we feel that it is much more responsible to commit a percentage of revenue.
Our reasoning behind this is simple: the aforementioned opacity of a company’s accounting practices. Profit can be a wily, fluid calculation that can look totally different depending on what a company wants to consider a cost. We are not talking about our accounting practices from our vantage point, but we are talking about them from your vantage point. When giving money away, you are putting your trust into a third-party. You are trusting them to be a good steward of your contribution. If you can’t be one hundred percent sure what the net donation will be, the trust has already been broken. To combat this, we choose revenue over profit when committing a percentage of sales to contribute.
As a hypothetical, imagine THREADS.GG has committed 20% of revenue to a cause. You, the customer, hear about this and want to contribute. You purchase an applicable product for $20.00. In this example, your total contribution can be known by calculating 20% of $20.00, which comes out to $4.00.
Notice that the resulting contribution can be known upfront regardless of costs. We believe this empowers our customers by removing potential ambiguity.
3. Contributing in the open
Whenever possible, we will make our best effort to publicly announce the details of a contribution exchanging hands. Preferably, these details will include:
- How much
- From whom
- To whom