Red6

The same reason some stores advertise prices as $99, $199, or $999. The human mind will see that as less than $100, $200, or $1000 and feel better when they spend the money. They can now tell others they paid less than $100 or whatever for the item they just purchased.

Also the same reason that gasoline is listed as $2.99 9/10 of a gallon. Most people will read that as "less than $3 per gallon.

Nothing but psychological tricks to make you think you are paying less than you actually are.

jiminnee

I have always wondered about this myself. I always figured that these companies figured their customers weren't paying attention. Surprise! Some ARE paying attention. With the gasoline, I think there is another reason & it has to do with the pump.

Red6

On gas, it is not the pump. The pump could be set to any amount including even non-fractional amounts. But no one wants to be the one that looks to be a penny more expensive. Would you go to a station at $3.00 9/10 or one at $3.01?

The actual reason there is a fraction goes back to the 1920s and 1930s when gas was around 10 cents a gallon. When the price was raised due to taxes or supply a full penny increase would have been a 10% increase. So gas companies came up with the idea to raise it by 9/10 of a cent thinking few people would notice the difference.

They were correct. Even today most people only look at the whole dollar amount when looking at gas prices and ignore the 9/10. Any station today that dropped that 9/10 and moved their price up to the whole amount would appear to be a full cent more expensive that others in the area. So no one does it. In today's economy, a penny makes littleor no difference but everyone is used to this and so no one wants to rock the boat and look different.

Paradise Pirate Loc: Cape Coral, FL

It also cuts out paper trail of donations if they want to skim the receipts.

Picture Taker Loc: Michigan Thumb

LOOK UP THE SALARIES of the charities. I found Tunnels 2 Towers the best. NO salaries. Others have salaries of hundreds of thousands to individuals running them.

NDMarks Loc: Dublin, Ca

I suspect that many of these organizations use the same marketing company or marketing model. As someone said, do your due diligence before getting involved. I once tried to send a contribution to one of the charities but I was told they didn't want direct contributions but rather they only wanted a credit card number. I can think of several reasons for only wanting credit cards but that isn't for me!

robertjerl Loc: Corona, California

I saw a review of one that estimated less than 10% of donations even went to aid workers, let alone to clients.

Picture Taker Loc: Michigan Thumb

Funnels 2 Towers takes no salaries and 95+% goes to what they say. They list the people and salaries as $0.
After reading the blog I looked up a bunch and was amazed at the big con job some are.

Mr Mike W

I have also wondered that also. Tunnels to Towers is an exception at $11 per month (not $10.99).
Mike in STL

robertjerl Loc: Corona, California

Sep 11

Floyd Loc: Misplaced Texan in Florence, Alabama

I, like many other UHH members, have supported St. Jude for years. About 2 weeks ago I read where St. Jude had a very intensive review by one of the agencies that check how the non-profit companies spend money donated by folks like us (I haven't had time to find it again, but I intent to do so). This agency gave St. Jude a very low mark citing the fact that a majority of their funds for treating patients come from research grants, the patient's personal insurance, and Medicaid. Barely 10% of the money streaming in from private donations (our money) goes for treatment; the other 90% of our donations go to fund St. Jude's marketing efforts. St. Jude immediately denied this, but the rating agency, citing nothing but the records St. Jude provided, refused to change their decision.

robertjerl Loc: Corona, California

I did read about one that spent 80-90% on marketing that made sense.
No marketing, they took in X dollars.
After paying for marketing, they had 10X left over.
It seems all the media and ad agencies should give charities a break on price. Maybe in return for tax credit?