I
hoped to test ride a BMW motorcycle but received confusing messages from BMW
Canada. I found their request for a charitable donation combined with their
no-receipt policy strange.
I
reviewed the BMW Canada website, called the dealer rep and read the email from
the BMW Canada marketing rep. There were some holes in their story and the
messages didn’t ring true -which raised the followings questions for BMW
Motorrad Canada.
Questions for BMW Motorrad Canada about Charitable Donations
Purpose,
Policy and Procedure
Why
do you charge a fee to test ride your motorcycles? What’s the real purpose?
Do
you also charge for a test ride of your automobiles? If not, why the different
practices?
If
a person buys a motorcycle after a test ride, will their test-ride fee be
refunded?
The
Myth of the Charitable Donation
Why
do you call the fee a charitable donation?
Your
practice and the email from your marketing rep suggest otherwise.
Are
you aware that a charitable donation is normally recognized with a charitable
receipt?
Why
do you believe that a fee to test ride your product is similar to a hospital
selling lottery tickets?
Fee
to Ride
If
it’s not a donation it must be a fee for service. Why not call it what it is?
Why do you not issue a
receipt for the money collected? Is that normal practice at your dealerships?
What else don’t they issue receipts for?
Do
you accept payment by cheque, debit or credit card? The dealer rep emphasized
cash payment. As we all know cash is harder to trace.
Official
Charity Recognition
Is
your intended charity aware of your fundraising? How are you working together?
Is there a link on their website to accept donation for your ride?
Did
you ask them to provide official charity receipts?
Why
was there no link from your site to the charity website to make it easier for
people to donate?
The
Money Trail
When
there are no receipts issued how do we know where the money goes?
Is
the money received recorded as taxable income by the local dealer or BMW
Canada?
What
is the difference between the money paid by demo riders, the amount reported by
the dealer, the amount reported received by BMW Canada and the actual amount
submitted to the charity? Those are four different transactions.
How
much of the money donated by riders is used for coffee, refreshments and other
promotional activity (as suggested in the email from your marketing rep)?
When
and how are those numbers reported to all the parties involved? Who can I
contact for that financial report? Are the numbers from last year available
yet?
Who
gets credit for the donation?
If
an individual gives you money why doesn’t the individual get credit for his/her
donation?
Your
website states that you donate on behalf of your dealers. What does that mean?
Do the dealers each receive a charitable receipt?
Does
BMW Canada claim the charitable donation against their income tax?
That
might appear to be a lot of questions. When something doesn’t smell right it
raises questions. The stranger the smell – the more questions.
Here’s that email from the marketing rep at BMW Canada
-----------------
“Hello
Gentlemen,
Just
to clarify the test ride donations, the reason we do not give receipts is
because you are receiving something in exchange for the donations. In
this case you are getting a ride on a new motorcycle and also lunch or a
refreshment. It is just like if you buy a hospital lottery ticket, no
receipts because you are getting the chance to win something. If you
donate directly to the COC then yes you can get a receipt because you are not
getting anything in return for the donation.
Our
test ride program is not set up for you to donate directly to the COC and then
to show us a receipt.
If
you are interested in riding a new BMW, please follow the regulations we have
set up. We pool all the money collected during our rides and donate it on
behalf of the Motorrad retailers at the end of the season and make an
announcement on the total when done.”
----------------
Here’s
the text from the
BMW-Motorrad.ca Website
----------------
All riders must arrive at least 15
mins prior to your scheduled ride time in order to:
• Complete the Test Ride Waiver
• Pay your charitable donation
• Participate in the Rider’s Meeting
----------------
What other questions spring to mind? Add them below.
George Torok
Keynote Marketing Speaker
Co-author of Secrets of Power Marketing
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