Amazon will close its charity program Amazon Smile in February 2023

According to the latest reports, Amazon Smile will shut down operations within the next month. The non-profit organization was tasked with championing various global causes as the corporate giant wanted to create a positive impact.

Since its establishment, the charity has been Amazon's long-standing commitment to positive change. Some of Amazon's global revenue went into funding organizations associated with Smile. However, the non-profit will cease operations on February 20.

While Amazon Smile was projected to be a success given the parent organization's deep pockets, a lack of cohesive vision and future funding strategy dommed the effort. Company representatives elaborated on why the charity was forced to shut down.

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Amazon Smile was not focused on an impact area

Amazon's charity program was meant to reach a wide section of society. While a noble idea, the lack of focus was detrimental. The company found that too many organizations require assistance. The non-profit took on numerous causes that left each sub-org with less funding.

"With so many eligible organizations — more than 1 million globally — our ability to have an impact was often spread too thin. Charities enrolled in the program will get a one-time donation equivalent to three months of what they earned in 2022."

Since 2013, Amazon Smile has donated a percentage of its revenues to all the charities that have been associated with the program. While the net total is over $500 million, each company gets a paltry amount. Since the number of charities in the pool is huge, every organization received an annual average of $263.

Amazon Smile's closure won't stop the company's charitable ambitions, as it will continue to bring help to the downtrodden. The latest decision also indicates that the commercial giant isn't doing very well financially. The last few months have seen several job cuts as downsizing continues amidst the global recession.

Given its background, Amazon also represents a list of companies in the space that have been gravely affected by the worldwide recession. The charity might have been the unfortunate collateral as the company looks to strategize in new areas.