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07/06/2010

Editor�s note:

The following is an update on Jack Schacht, the former trade exchange founder/owner of Illinois Trade Association (ITA). Known during his barter career for his creativity, Schacht once again has engaged his tireless energy and imagination by building a new instrument for the huge nonprofit community.

New E-Commerce Fundraising Program Triples Nonprofits' Earning Power

In the post-recession nonprofit world, donations are down while demand for services is up, and nonprofit organizations (NPOs) everywhere are avidly searching for new, more powerful fundraising vehicles.

Enter ShopAsYouGive.com, a new twist on e-commerce fundraising that � according to co-founders Jack Schacht and Jim Novak � pays nonprofit partners three to four times more commissions than traditional affiliate marketing programs.

Sure, there are already dozens of online malls that offer commissions to member NPOs. But these programs, by their own admission, deliver an average of just 3% of gross sales. (Don't let their �we pay up to 30% commissions� claim mislead you. The reality is that very few retailers in such programs pay at the highest levels.)

�The affiliate marketing model only takes you so far,� noted Schacht, Managing Partner, who built the largest independent U.S. barter exchange (ITA) in the 1980s. �We conducted mountains of research, and then collaborated with nonprofit professionals to develop an original business model.�

Instead of basing commissions on gross sales, Shop As You Give bases commissions on gross profits. A full 30% of gross profits, to be exact. The company, which cut aggressive deals with more than 100 top manufacturers, employs a 50-60% retail markup. NPO partners share 30% of that markup. Do the math, and it translates to 10-12% of gross sales, as opposed to the standard 3%. That�s a much better deal in any economy.

Shop As You Give not only was created with input from the nonprofit community, its advisory board is composed of nonprofit professionals. As a result, it boasts some unique twists and benefits that cater to NPOs.

For example, �Our nonprofit partners can request an additional donation at check-out, a benefit other programs can�t duplicate,� declared Leticia Villalon-Soler, who chairs the firm�s Nonprofit Advisory Board and is a professional fundraiser at a major university in the Northeast. �This can make a significant difference in earnings.�

And that�s just for starters. Other benefits with Shop As You Give include:

         Each nonprofit can essentially create its own online store, by branding web pages with the organization�s own logo.

         NPOs can easily eliminate categories or sub-categories of products that conflict with their mission.

         While the store is stocked with thousands of products � including apparel, jewelry, electronic items, and pet supplies � there�s a special emphasis on natural, organic and eco-friendly products, as well as items that are American made.

         Prices are competitive. Shop As You Give developed proprietary software that allows it to regularly compare its prices to those of other online retailers.

         Participating NPOs will receive ongoing promotions and discounts, which make it easy to publicize the program to supporters.

To participate in the program, nonprofits must be licensed 501(c) organizations, reported Novak, VP of Enrollment. The enrollment form is posted on www.ShopAsYouGive.com.

In the process of launching a 60-day beta test, the firm is enlisting the aid of 500 NPO test partners. Participating nonprofits will receive an extra 20% commission � for a total of 50% of gross profits � during the test period. The test will launch in late summer, with the official grand opening planned in time for the Christmas season. �We can�t wait to get started,� admitted Novak. �And, yes, we�re still accepting nonprofit test partners.�

For more info or to participate in the nonprofit beta test program e-mail j.novak@shopasyougive.com.



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