Zynga Will No Longer Take A Cut Of Charitable Donations

Michael Arrington

J. Michael Arrington (born March 13, 1970 in Huntington Beach, California) is a serial entrepreneur and the founder of TechCrunch, a blog covering startups and technology news. Arrington attended Claremont McKenna College (BA Economics, 1992) and Stanford Law School (JD, 1995) and practiced as a corporate and securities lawyer at two law firms: O’Melveny & Myers and Wilson Sonsini Goodrich... → Learn More

Tuesday, November 16th, 2010


For about a year and a half Zynga has experimented with occasionally selling virtual goods for charity. But they’ve been criticized in the past for sometimes keeping up to 50% of the “donation.” Some have criticized Zynga for pulling at people’s heartstrings over issues like the Haiti earthquake, and then keeping part of the money. Much of the criticism was over how the details were messaged. And others have defended the program since at least some money went to good causes.

How much money? That isn’t clear. But Zynga raised $1.5 million to build a school in Haiti through promotions on Farmville and Mafia Wars. 100% of proceeds were donated, and $200,000 of that was directly from Zynga, says the company. They also covered credit card fees.

In fact, most or all of the most recent Zynga.org charitable efforts have been 100% donations, says the company (although we’re not sure if Facebook keeps its 30% cut for Facebook Credits or not). We hear, but Zynga hasn’t confirmed, that all future charitable efforts will be 100%, and that Zynga will no longer keep a cut on any of these programs.

Here’s Zynga’s official statement when we reached out to them about this: “Our goal with Zynga .org is to activate massive change for good and we’re focused on providing people with the largest possible platform to effect positive social change. We’re excited to roll out a new campaign beginning in early December in FarmVille in support of the UCSF Children’s Hospital Challenge for Charity. We look forward to sharing more news around .org when we have it.”

Company: Zynga
Website: zynga.com
Launch Date: July 2007
IPO: NASDAQ:ZNGA

Zynga was founded in July 2007 by Mark Pincus and is named for his late American Bulldog, Zinga. Loyal and spirited, Zinga’s name is a nod to a legendary African warrior queen. The early supporting founding team included Eric Schiermeyer, Michael Luxton, Justin Waldron, Kyle Stewart, Scott Dale, John Doerr, Steve Schoettler, Kevin Hagan, and Andrew Trader. Zynga’s mission is connecting the world through games. Everyday millions of people interact with their friends and express their unique personalities through our...

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