SAVERS STORES: Tricking donors, treating themselves, screwing charities
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Cloaked in fuzzy deception, and leaping all the way to the bank, the multimillion-dollar
Savers operation claims to benefit Big Brothers. It does: with a $1,500 donation. |
(7/4/14)
PRELUDE: When you telephone any of the eight vast, bustling Savers stores in Utah, the phone is answered with a cheery, "Savers Thrift Stores: Supporting our local Big Brothers/Big Sisters!"
Being a cynic is a tough job, but somebody's got to do it. Otherwise, we'd never find out the truth about anything.
I have learned that of the millions of dollars these eight stores take in each year, ONLY $1,000 TO $1,500 GOES TO THE HIGHLY REGARDED CHARITY. THE REST IS PROFIT. Savers is at the bottom of Big Brothers' long list of donors on its web site, many of which gave more than $20,000.
Big Brothers/Big Sisters (and various other charities in other states) allow themselves to be used as lures to attract hundreds of millions of dollars in donations in exchange for a shockingly paltry return.
I was skeptical the moment I heard a public service announcement in early 2014 about the new Savers thrift shop in our area, which described itself as a "compassionate" operation, "dedicated to helping one of the most deserving charities in the state."
"Go shopping, and help underprivileged children at the same time!" a radio ad said enticingly.
"Give your gently used items to Savers and help those in desperate need," another commercial implored.
"Proceeds go to Big Brothers Big Sisters!" a jaunty TV commercial claimed, tugging at those proverbial heartstrings. What a wonderful rationale for a buying spree!
But it is pure hype, and blatantly misleading.
My first question was: Is Savers itself a nonprofit? The answer is NO. It is "a U.S.-based multinational profit-making conglomerate" with more than 350 stores in three countries.
My second question was: How much of its $1.5 billion annual net goes to the charities it claims to benefit? The answer is: None
of your business. Savers
has always refused to disclose its outlays to the nonprofits whose
names it uses to attract both donors and shoppers (and the charities flatly refuse to discuss the matter as well). I found estimates
ranging from one percent to 10 percent. Savers earns more in one year than it donates every 10 years, according to documents regarding its second recapitalization.