Washington-- Holiday shoppers would get new reassurances on retail-based charitable giving under legislation co-sponsored by Senator Evan Bayh (D-IN) to help consumers avoid seasonal scams.

The Protecting the Spirit of Giving Act, co-sponsored with Senator Bob Menendez (D-NJ), would help consumers make informed choices about retail purchases in which the vendor promises to donate a portion of the sale proceeds to charity. The practice, referred to as “embedded giving,” is popular among retailers and combines a donation to charity with a retail purchase.

With embedded giving, retailers pledge that a portion of the purchase price of a product will be donated to a charity. However, some charitable organizations have recently pointed out that they were unaware of a retailer’s embedded giving promotion.

“Every year, Americans show their extraordinary generosity by giving nearly $300 billion to charity, particularly during the holiday season,” Senator Bayh said. “Embedded giving can make supporting a worthy cause easy, but consumers should have confidence that holiday purchases to help a good cause are, in fact, going to the charitable organization named by the retailer.”

Under Bayh’s legislation, retailers would be required to notify the organization before using their name. Additionally, consumers would have greater access to information on how much of their purchase will go to charity as well as any maximum donation amount the retailer may have established.

###