With Christmas in the rearview mirror, my mind—and likely yours—is turning toward New Year’s resolutions. Statistics tell us a little more than a third of us will make one, but most will be forgotten before the first week of January is out. In fact, less than one in ten actually reach the finish line
I’m no saint in this department. I can’t tell you how many times my “resolutions” to eat better or quit smoking lasted all of forty-eight hours. But this year, I have one resolution I know I will keep forever.
Being “up in years” and gainfully retired, the Bohunk and I watch our fair share of television—or stream it, as the kids say. Lately, the programs feel like they’re just filler between the commercials. We are inundated with heart-wrenching videos from the ASPCA, the NAACP, St. Jude, and Shriners. The formula is always the same: a sincere request, a sad pair of eyes, and the promise that for just $19 a month, I can be the difference between life and death. But much of that donation goes toward covering the costs of these campaigns, meaning less of your donation actually reaches the cause you want to support.
As a “thank you,” they’ll even send me a tote bag, a t-shirt, or a fleece blanket. It’s a compelling pitch. But this year, I started to wonder about the mechanics behind that specific, recurring $19 price tag.
It turns out, there is a massive, invisible industry profiting from our desire to do good.
Many of these campaigns are managed by a conglomerate called Moore DM Group. They aren’t just an ad agency; they are a “one-stop shop” for industrial-scale fundraising. They produce the commercials, but they also own the data firms that target your living room, the printing presses for the mailers, and the warehouses that store those “free” blankets.
Why $19? It’s a psychological trick. Market research shows we view $19 as significantly cheaper than $20—it’s a “teen” number that feels like a bargain. Even better for the recruiters, $19 is a “non-round” number that often slides past credit card fraud filters more easily than a flat $20 or $50 would.
The swag they send you—the “Premiums”—is the hook. Because Moore buys these items by the millions, that $20-looking blanket costs the charity maybe $3.00 to get it to your door. But it’s a brilliant investment: people who get a physical gift are 30% more likely to keep that monthly charge hitting their credit card for years.
The most shocking part? This is a profitable business model called “Sustainer Acquisition.” When you sign up through that TV ad, the charity often pays the fundraising firm a massive commission— sometimes as much as $285 per donor.
Think about the math: If you give $19 a month, you’ve contributed $228 by the end of your first year. But since the charity paid a $285 fee to “acquire” you, they are actually $57 in the hole in year one. Your money doesn’t truly start helping the dogs or the children until your 16th month of giving.
So, here is my New Year’s resolution: I hereby resolve to ensure that 100% of my donation goes to the cause, not the middleman.
The most effective way to do that is to bypass the TV commercials entirely. If a commercial moves you, don’t call the number on the screen. Go to the charity’s website directly, or better yet, walk into your local animal shelter or local NAACP branch and hand them a check. When you give locally and directly, you cut out commissions, warehouses, and “industrial” fundraisers.
This year, skip the “free” blanket. The best feeling isn’t wearing a t-shirt that says you’re a giver— it’s knowing your money actually arrived where it was needed.
PS: You should check out the charity that is seeking your hard-earned money and your sympathetic heart. Charity Navigator and CharityWatch are the two most influential “charity watchdogs” in the United States. You can find them online. While they both evaluate how non-profits spend your money, they use very different methods and often give the same charity different scores. Think of them like a credit score for charities: one is a broad, automated overview, while the other is a deep-dive forensic audit. Whenever you can, give locally.
