Can Etsy shops donate to Charity? 

By Scott Voelker •  Updated: 05/09/23 •  8 min read

Etsy is all about supporting small artisans and small businesses. This makes it a great way for customers to redirect their cash from big corporations toward smaller artisans. 

Can Etsy shops donate to charity? You may be asking this question because you're either a shop owner and want to support a local or international charity that you're passionate about. Or you're a customer, and you're wondering if the Etsy shop you're supporting is also giving back. 

Either way, we will be looking at whether shops on Etsy can donate to charity, and we will be going deeper by also looking at how sellers can donate together with the benefits. 

Can Etsy shops donate to Charity?

Yes, Etsy shops can donate to Charity as long as they comply with a few basic rules. These donations have the potential to make a tremendous impact on causes they(sellers ) care about while remaining profitable, whether you do it through a portion of your sales or otherwise.

People dancing around during daytime

How do Etsy shops donate to Charity?

You may have heard that there are only one or two ways to donate to your favorite charity. Well, that may be true if you're set in your ways; however, from what we have read, there might be more ways.

They include: 

Donating a certain percentage of sales from particular items 

This involves choosing one or several things from your shops and dedicating a certain amount to a charity.

Direct donations 

This is where at your discretion, you choose how much money you will be donating. This can be at the end of the month or year. You can do this through the shop: i.e., the profits or the salary you pay yourself.

Donating a portion of the profits 

This is one way many sellers, especially on Etsy, go about it. You can decide to donate a certain percentage, say 10%, after calculating your profits. 

Additionally, some shops choose to donate a certain amount of cash, for example, $1 per sale. 

Creating and donating items 

This is by far one of the more straightforward modes. If you have a charity in mind, let's say one that works with kids, you can donate some toys to the charity. This isn't limited to charities that deal with children. 

There are several methods you can go about it. You can also reach out to them and ask for ideas or your community, i.e., customers. 

Donating half of the proceeds 

A lot of shops on Etsy use this method, with some even going as far as donating 100% of the proceeds to their charity of choice. However, this is all up to you and what you're comfortable doing. 

There are numerous ways that you can go about donating. However, one thing that you should always note is that the charity you are endorsing is legal. 

Additionally, if someone reaches out to you through messages on Etsy asking you to donate to their charity, be vigilant. It's not always a registered charity, and they may be trying to scam you. Moreover, Etsy does not allow the solicitation of donations through messages for sellers and buyers. 

A person holding a stuffed monkey

Using the Etsy Uplift Fund 

For buyers who may be looking for a way to donate directly, the Etsy Uplift Fund may be a good fit. 

The Etsy Uplift fund is a charitable initiative set up by Etsy to support non-profits that work to dismantle barriers that work against entrepreneurship. 

Etsy understands that the road to entrepreneurship isn't the same for everyone and is challenging. Through the fund and Brooklyn Community Foundation, a 501(C)(3), they can support different non-profits across the US. 

Through the fund, buyers in the United States using Etsy payments can round up their orders and donate the remaining change to the fund. For example, if their total order comes to $68.73, they can round up their order to $69 and donate the change to the fund. 

Although the change may seem small, it adds up over time and can amount to a good amount of money. 

Once a customer checks out, they can see their total (order plus donation). 

Need to know: Etsys policies on charitable donations

Before you can start donating to charity, you need to be aware of a couple of things, especially if you want to fundraise for an organization with 501(c)(3) status. 

One thing to always remember is that Etsy might change its policies at any given time. 

As such, it's important to always stay up to date on any changes that might have occurred. 

If you fail, to comply with their house rules, your account may be terminated or suspended. 

A group of people standing around creating items

The Benefits of Donating through an Etsy Shop 

Shopping on Etsy is an excellent way to support independent artisans and small businesses while supporting and contributing to a charity. Customers donating through an Etsy shop allows them to support a cause they are passionate about while shopping for their favorite items. 

Furthermore, customers always feel good when they know that part of their purchase is being used for a positive purpose, thus making a difference in the world.

Benefits of Donating As an Etsy Shop Owner

Apart from the charitable aspect, there are added benefits for sellers.  

When choosing a charity to donate to be sure to :

Find the right fit: There are hundreds of charities across the US, not including international ones. As such, finding the right fit can be a hassle. One method you can use is to start with local charities. If you see a charity in your community making an impact consider donating to them for starters.  

Identify your core values and interests: Think about the issues you're passionate about and what is important to you. If the refugee crisis is something you're passionate about, look for charities or non-profits that are passionate about such issues. 

Consider the charity's mission: Evaluate its approach and how it aligns with your beliefs. 

Assess the charity's transparency: Ensure that the charity is open about how they use the donations and that they are accountable to their donors. 

Consider the charity's reputation: this might seem like an obvious thing. However, many people seem to forget that if things don't seem above board, it's best to stay away. 

Check for any negative reviews or controversies surrounding them. Additionally, consider how the community perceives them as a whole. 

Final thoughts

Donating to a charity as a seller is a great way to show your community that you care about leaving a positive impact on the world. Whether you do it through direct donations or donating a portion of the profits, there are numerous ways you can go about it. So if you're looking for a way to give back, consider donating from your shop and making a lasting difference. 

Scott Voelker

Over the years I’ve helped thousands of people TAKE ACTION to UNLOCK their true potential on building their ultimate freedom business, by developing the skills to make them resilient, confident and FUTURE PROOF. I’ve clocked my 10,000 hours over the years working in the trenches myself and helping others build and grow their brands. I know the power in TAKING ACTION better than anyone and I’ve seen people lives changed as a result of it...including my OWN!