Ban on Donation Apps

Apple's decision to not allow people to donate on the iPhone through charity apps have irritated nonprofits. Stephanie Strom of the New York Times writes that instead of being able to donate directly through an application, "Prospective donors instead are directed out of a nonprofit’s app and to its Web site, which the organizations say makes the process of contributing more cumbersome." Nonprofits argue that donations can be increased if people could use apps directly instead of the current more difficult longer method.

In Apple's defense executive director of Public Radio Exchange Jake Shapiro has said, "one of Apple’s major objections has been that if donations were to go through its payment mechanism, it would have to be in the business of managing and distributing funds and verifying charities as well." That argument does make sense being that Apple is a computer and online music retailer, it may be difficult and costly to have to manage the distribution of money in an industry it is not familiar with.

But is that the only issue? Following the earthquake in Haiti, Apple solicited donations for the American Red Cross through iTunes showing that they can be an intermediary for charitable giving. This seems to lead that another large aspect of this issue is money. Apple currently takes a 30% cut from its App Store transactions which would likely not be seen as a fair amount to take from nonprofits as a cost of doing business.


If it is a money issue, hopefully Apple and nonprofits can work out a way that people can use apps to easily donate to charity. That way both the causes being supported can benefit from increased funding and Apple can benefit from being seen as a company doing the right thing.