Making Money from Charity Boxes
Bulk Candy Vending Machines in most cases make the owner of the route money by signing up with a Charity Sticker Program and then the owner is responsible for buying the machines, candy and servicing of that machine. This is where some get misled into thinking it is a rip off when they hear that the owner of the route only pays $1.50 per machine. They don't realize that they are a business owner that has expenses just like any other business but does help the charity's.
If someone helps the Charities by having 100 machines and donates $150 per month, this is a great steady income for the charity with no risk or overhead to them. It is money they would not have if not for the vending operators who are participating in the program.
I have been reading about honor boxes which are very similar to bulk candy vending machine yet cheaper. If interested in buying honor boxes you can click on this link to get an idea of pricing from
CoolPlastic.com.
These honor charity boxes work the same and I do see them all over in grocery stores, hardware stores and thought I would mention the concept to you as a way to generate income just like most do with bulk candy vending machines. I guess the question here is if you are collecting for a charity and their agreement with you is to pay $1.50 per month per location then is it right for someone else to call it a rip off who doesn't understand the concept?
Most do not realize wether it is an honor box or a bulk candy vending machine these charity vending programs and contracts exist and do raise money for the charities. More than they would ever get if they did not exist. The owners and operators of these vending box or bulk vending routes have expenses for equipment, supplies, driving around servicing and locating.
I am attaching an article below that I thought was very interesting. Give me your comments on the article and your opinions since most of you are in the industry or are thinking about entering. Do you think Bulk Vending Machines or a better manner of collecting for the Charity sticker programs or do you think the Honor Boxes do mislead?
This has always been a tough topic and debatable especially when you are trying to get a location for the charity vending program and someone point blank asks if all the money is donated to the charity. Let me know how you like this posting and what you thought of this article written by WCCO TV I TEAM.
ARTICLE BELOW Written by WCCO TV
It takes just a second to drop a dime into a charity box and you think you are making a difference.
The WCCO-TV I-TEAM found that's not always the case. In some cases, hardly any money is going to charity, no matter how much is collected.
Last December, Linda Ronan made headlines in the Twin Cities because of how she was making money.
Banking on the generous hearts of holiday shoppers, as she placed boxes at a handful of stores and kept the proceeds.
Ronan told WCCO-TV she bought the boxes as a business venture and that she has done nothing wrong. She might be right.
Prosecutors still have not decided if she should be charged with a crime.
The I-TEAM found out Ronan was participating in a vending sticker program that lets people use a charity's good name to raise money.
Money that by law does not need to go to the charity.
"You risk losing your good money," said Solicitor General Lori Swanson.
"So the bigger questions is, it's legal, but is it misleading?" WCCO-TV's Terri Gruca asked Swanson.
"Yes, correct," Swanson replied. "If people did give to a charity, if they feel like the charity or the owner of the box mislead them, then we would encourage them to file complaints with our office."
To find out how much money a charity box brings in, the I-TEAM set up an experiment, placing charity boxes around the Twin Cities.
The I-TEAM signed up for a sticker program with the Vanished Children's Alliance, a legitimate charity, that helps find missing kids.
Based on the agreement with VCA, we could not represent ourselves as fundraisers.
Placing the boxes across the metro area was easy. Fifteen boxes were left out for 30 days in ice cream shops, smoke shops, restaurants and liquor stores.
"This morning, it's to help find missing children," said donor Gina Breedlove when asked where she thought her money was going.
The fine print on the sticker said, "All proceeds go to the unit owner." That means the person placing the box gets the cash.
"I never read the fine print on that," said Breedlove.
The sticker also said, "The owner of this unit makes a guaranteed monthly royalty payment to the Vanished Children's Alliance." It does not say what the fee is.
In the boxes, the I-TEAM collected pennies, dimes, dollars and even a $5 bill. After one month, the total collected was $120.79.
All the I-TEAM was required to give to the charity was $22.50, or $1.50 per box.
"We want as much disclosure to the public as possible," said Georgia Hilgeman Hammond, who started up the Vanished Children's Alliance.
Hammond started the alliance in San Jose, Calif. after her own daughter disappeared. Her daughter was eventually found, but she wanted to help other kids.
She said the charity's sticker program is one way to help and believes the stickers themselves say enough.
"It's legal, but is it deceptive?" Gruca asked Hammond.
"I don't think it's deceptive and anyone that has additional questions can pick up the phone and call us," Hammond replied.
"You're doing a box for charity and the reality is the charity is yourself," said Mike Farnham. Farnham took the I-TEAM's box out of his liquor store when he realized the Vanished Children's Alliance did not have to get all the cash.
The VCA said it is not all about the money.
"We're getting publicity for this particular child, exposure for this child and exposure to the agency so people can know of a resource," Hammond said.
The VCA fears people will not give if they find out the charity only requires to give $1.50 a month.
"There probably are people making money and you know, it's not necessarily bad because hopefully, it's a win-win situation," Hammond said.
The I-TEAM found people all over the Twin Cities using charities to make money.
Chris Bratvold uses National Children's Cancer Society stickers on her vending machines. She brings in about $200 a month.
"They told me this can be some very good income on the side," Bratvold said.
Diliana Thilomy uses stickers from Child Search on her candy-filled boxes.
Both women said they got involved in this business to raise awareness for good causes and to make money.
"I needed help and they needed help," Thilomy said. "I thought this was a pretty good thing to do."
The Vanished Children's Alliance said people should only use its stickers on boxes where people get something for their money.
The Alliance said just using the term honor box in their contract is enough to let people know they can't just put out boxes to collect donations.
However, the charity never asked the I-TEAM if it was selling anything when signing up.
The Ronald McDonald House is one of the few charities that does not let people make money off its name.
"That money is very significant to us," said Meg Katzman, Executive Director of the Ronald McDonald House in the Twin Cities.
The local and national charities get 100 percent of the money collected in McDonald's charity canisters.
"For a charity to allow someone to put a box out and only receive a minimum of $1.50, when you have the potential to raise so much more money, I have an ethical problem with that," Katzman said.
The Vanished Children's Alliance said it makes $200,000 a year from its sticker program.
"I think about the good that money does for these children and these families and for educating the public," Hammond said.
The I-TEAM's earning show the VCA is missing out on a lot more. The I-TEAM made five times what it was required to donate and gave it all to the charity.
If the VCA took in five times the $200,000 it typically earns in a year, it could have $1 million.
Knowing that, the VCA still doesn't plan to charge more than $1.50 a month.
"As a matter of fact, a lot of people think we ask too much," Hammond said.
In the 1980s, Minnesota had a law requiring charities to give 70 percent of what they collected to their cause.
The Supreme Court ruled that law unconstitutional so now you have to do your own homework.
The best way to check up on a charity is to call the charity or look at the charity's legal papers at the Attorney General's Office.
Even if a charity does not participate in a sticker program, it may use an outside agency to collect charity box profits. Most agencies get 30 percent of the money collected.
(WCCO)
OK, so that is the end of the article. What did you think? What is your opinion?
Do you think most operators are giving to these charities once they collect the money from the honor boxes. If they are do you think it is acceptable?
We like to Educate on the Bulk Vending Blog and discuss issues relating to this industry. We hope you find the blog helpful and educational for new or existing members of the bulk candy vending industry.
Have a great Sunday and upcoming week.
Steve
