The US is set to take a step toward ending its reliance on a costly and time-consuming donation-based business model by moving to a system where charities can send donations directly to the local store.
The change to the donation-driven system, known as the “Direct Market,” was announced by President Donald Trump on Thursday.
The new system will bring greater transparency and accountability to charities by eliminating the middlemen and the “pay-to-play” nature of many traditional retail donation schemes, according to a statement from the White House.
The shift will take effect in 2020.
In addition to being a significant economic boost to the economy, the change will create new jobs and boost charities’ ability to support people in their communities.
In a statement on Friday, the president said that he was “proud to be leading the fight for a new era in US charities and will ensure that charities in America are no longer dependent on a few big corporations and that they are fully accountable for the actions of their workers.”
The Direct Market, known by the acronym DMR, will allow charities to collect donations directly from retailers directly from their website, a process called “direct mail.”
The decision to implement the DMR system comes as a significant shakeup of American charity and philanthropy.
In the past decade, nearly every major charity has faced the burden of running a traditional retail operation, while the bulk of their efforts have been directed toward promoting charitable causes and raising money for programs that are directly related to their work.
In 2016, President Trump signed the Americans With Disabilities Act, which gave the disabled a voice in the charitable world.
The law allowed the US government to grant the Americans with Disabilities Association and other groups a significant amount of financial power, allowing them to spend up to $2 million a year on direct mail and direct mailing.
The new Direct Market will help the organizations to take that power back, the White of last November said.
The change will make it easier for charities to reach out to more people, and it will give them greater control over their donation programs.