The Dark Secret Behind Those Omaze Giveaways - How Money Works

[@HowMoneyWorks]

Sign up for my newsletter compoundeddaily.com 👈

[@HowMoneyWorks]

There goes my chances of ever getting sponsored on this channel.

[@Adhithya747]

😂😂

[@Adhithya747]

Hey bro do a video about the Crypto Donations to how will it be used if the country's government is seeking to ban them.

[@vankram1552]

The bridge burning continues

[@nemanja228]

There's always Raid: Shadow Legends (:

[@HowMoneyWorks]

Nemanja that made me LOL

[@JohnS-il1dr]

This is like the California lottery saying a portion of the winnings go to schools, but the budget for schools get cut exactly the amount the lottery brings in.

[@gohoosiers8824]

Duh, that’s what a portion is

[@TheBajamin]

But its cali. The entire budget should be dropped to $0 and we should just saw you guys into the ocean.

[@2011blueman]

That happened in every state. School spending never went up when the states allowed lotteries, the money essentially just goes into the general funds and allows for extra spending elsewhere.

[@willysnowman]

@@TheBajamin Bonespurs lost again.

[@tstan6827]

Seriously, you make a good point, but it is not the California Lottery's fault. It is the California (or any state's) politicians that have cut the school funding by the lottery's contribution. US lotteries are private, FOR PROFIT, companies. I'm sure the CA Lotto wanted to donate zero dollars to the schools, but worked out a business plan that allows them to give that money AND still make a profit.

[@darthowl100]

Donate to small local Charities that you can physically go to and see their work being done, and hopefully volunteer some of your time if possible to.

[@caidenfukano7775]

That won't get me a lambo tho will it

[@EngineeringNibbles]

@@caidenfukano7775 take the 45$ you would have given to omaze, give 10 to your charity and get yourself some lottery tickets with the last 35, you'll get more value from it

[@JohnS-il1dr]

@@EngineeringNibbles better yet take that same amount and invest it in an interest bearing account or index funds. Donate a percentage to reputable charities and deduct from your tax in April

[@pbjracing14yearsago49]

@@JohnS-il1dr smart idea!

[@mikej5541]

Tell that to BLM

[@TommyHolly]

Hopefully you read this comment. I have a few corrections making Omaze much worse than you reported. 1. Omaze doesn’t give 15% to charity. Please read their legal disclaimer again. They give 15% to CAF-A, an expensive group of lawyers which handle the money, the legal paperwork, international issues, taxes and so much more… CAF-A also takes an Omaze sized cut since they don’t work for free. Usually around 65-85% depending on what you want them to do. In the end, the so-called charity receives less than 5%. 15% x 35% = 5% 2. I said so-called charity since many of the beneficiaries are actually political advocacy groups, NOT charities. Looking at who receives the money you’ll see many of these groups spend their money on lobbyists, lawyers, and political donations. (And you guess which side of the political spectrum that benefits.) 3. There is no actual raffle. I’m not sure how you came up with odds based on what they spend??? There is no actual raffle or contest. No odds. No broadcast of someone picking names from a hat. No exact person mentioned who picks the “winners” and no mention of exactly what method they pick people. No ticket numbers to track. There is no oversight or regulation like a casino. It’s all behind closed doors. 4. Yes they are doing harm. Most people only donate to 1-2 charities a year if at all. Giving money to Omaze thinking that you are helping only means your money was almost totally wasted. I volunteer for a few different charities. One of the most common responses I get is that they already donated to a charity this year already. When I ask who, most of the time the response is Omaze. People aren’t willing to donate more money because they think they already did with Omaze. 5. Many of the so-called “winners have been social media influencers. Likely they were hand-picked for the extra publicity. 6. Google “Omaze CEO Salary”. You’ll see the average salary at the company is a whopping $200,000 a year!! The CEO and Board members all make up to $500,000 a year.

[@MHNK77]

this should be pinned

[@shojimujoshojimujo3315]

He made several errors on this video. For starters the reason Omaze is technically legal is because it's a sweepstakes not a lottery or gambling. Supposedly no purchase or donation is necessary in order to enter. They claim that a purchase or payment will not increase your odds of winning. If they didn't then it would be considered an illegal lottery. Who knows if they actually stick to the rules but they do have a way to enter without purchase. Most people probably aren't even aware of the free entry option and I highly doubt anyone's ever won by way of free entry. Edit: I actually just went looking around reddit and found a guy that claimed he won by spamming the free entry option. Saw a couple other guys claim they won but who knows if they're Omaze shills.

[@TommyHolly]

@@shojimujoshojimujo3315 I wouldn’t believe anyone that said they won. There are no people willing to go on record that they’ve won. The way you really know this is complete BS is the legal aspect. If it really was a sweepstakes, what’s the odds of winning? Who picks the winners and how do they pick them? What method do they use? Is there any ticket numbers to track winners?? All the answers to these questions is no. They don’t do any of this. Omaze is a scam.

[@lightningboltX-sn7xv]

They should be stopped before anyone else gets scammed by them

[@Akeso_ppp]

well say about picking winners!!!

[@aby0ni]

You're so well spoken and explain things so clearly, I do believe you're gonna be big, and you've earned yourself a subscriber.

[@HowMoneyWorks]

That’s one awesome subscriber that I’ve earned! Thanks for the kind words :)

[@mrleafbeef634]

@@HowMoneyWorks The catholic church are doing this too 🙌

[@fortheloveofnoise]

@@HowMoneyWorks Gambling is bad? That seems like personal bias. You could call eating meat bad, and I do....but that is my vegan bias....it's just that.

[@AfricanWithNoFlies]

This

[@chanito_nyc]

@@mrleafbeef634 no 😮!

[@wardyorgason]

I actually donated to omaze once. I honestly didn’t realize I was basically gambling. I’m really glad you explained this

[@vankram1552]

Im actually in the middle of setting up my own religion/church/university/charity

[@HowMoneyWorks]

Not a bad play these days.

[@ottoweininger8156]

I will follow you, o leader

[@nowimhigh]

Ill provide the Kool aide uh hmm I mean the Eucharist.

[@deus_ex_machina_]

I presume it'll be modelled on the good work done by 'Our Lady of Perpetual Exemption'

[@WestZ]

@@deus_ex_machina_ there it is. This is the comment I was looking for

[@makatron]

I remember reading a book "How to profit from non-profit" years ago. You just assign yourself a high salary and pick a cause that's difficult to verify. Imagine building houses in a remote place or providing food to kids in the middle of nowhere, that's the kind of charity that makes you rich.

[@notmenotme614]

When they say they’ve raised $130 million to install solar panels in some remote African community. Which company are they using to do this? The answer is nepotism. The “charity” will give the contract (basically a $130 million cheque) to a close friend or relative, or one of the charity CEO’s other businesses. Do we get good value from this nepotism? Not when they’re not accountable for the work they’re doing, for example they could install just 1 crappy obsolete solar panel in just 1 community, that makes little difference and then pocket the rest of the $129,999,999. The BBC did an investigative documentary on a “charity” that claimed to build schools in Vietnam, Thailand or Cambodia. The “charity” said they had spent millions on computer equipment for the kids to use. When the BBC investigative journalist went to these countries to see what the “charity” had actually done, they found that the schools never even existed. Looking into their accounting, the journalist found the “charity” had spent millions on “consultancy fees”. But who was the consultant?

[@MajorSebbaa]

This should have a million views.

[@HowMoneyWorks]

Well thank you kind viewer :)

[@The_Rekluse]

KZbin probably hid it cuz it will probably affect their profits

[@uneconomist]

Even "legitimate" charities pay their CEOs/Executives millions. I did some research a while ago and thought about making a video on it. The reality is so disgusting that I got upset and didn't want to keep looking. Just look at how luxurious some offices of the SickKids foundations are.

[@kishisetasama]

Agreed. However, at the end of the day we must be able to measure their impact and they should be transparent about it. Because, unfortunately, the only way uou can get these huge organizations to operate well is to get the best and the brightest, and usually, the best and the brightest demand money to have a return on investment on their MBAs.

[@skyak4493]

My niece worked for a charity manager. The world is so full of scum the wealthy need full time staff to vet causes. 70% pass through is unheard of. Limiting giving to 50% or better spent on cause eliminates more than 90% of nonprofits. It is to the point that I am against tax deductions for all but the best charities.

[@kishisetasama]

@@skyak4493 this is true. It kind of sad how millions of dollars go into presidents of these organizations when they're supposed to help. I get that the compensation needs to be fair but that is way too extreme...

[@mqbq3651]

I interviewed for some bigger charity companies for financial positions. Always makes me laugh/disgusted when I learn about the none charitable daughter companies that write invoices for their "services" to the charity. And of course there are the nice salaries at the top to "reduce" the official profit if the revenues are too big. In defense to some other charities, the laws regarding none-profit organisations are ridiculous in some countries and forces some to be creative, otherwise they couldn't survive.

[@brois841]

@@kishisetasama so what you're saying is that this is really all just a charity to fund MBA's? Anyway, I understand the catch-22, but when you find out that a fraction of every dollar at a legitimate charity actually goes to charity, you just want to throw up your arms and say the eff with it.

[@FreeRsGuides]

When the giveaway is closer, they send out emails like 'get triple the # of tickets for the same price'... Diluting the people who paid in at the 'regular' price.

[@imt3206]

Shut up!

[@qlus]

@@imt3206 no u

[@MrKarlfebel]

This assessment is exactly correct 👏👌👍. This whole thing is shady as hell

[@shadowcatblackcat]

That's why I only submit the free entries. Each one is worth 2000 entries (allegedly) and most of the stuff has a limit of 6000. I'll keep putting three entries on everything and see what happens.

[@MrKarlfebel]

@@SpartanArmy117 can't fight you on that 😉

[@MrK133n]

Living in DC for a while really opened my eyes about “non-profits.”

[@batterybuilding]

AKA lobbyists.

[@TymaDem]

DC is an infamous epicenter of rot and corruption

[@vojtechstrnad1]

"This is not an attack on George Clooney, or the KZbinrs taking the sponsorship deals, this is an attack on you." Me: never even heard of Omaze before

[@HowMoneyWorks]

Haha well you are off the hook then.

[@tacticalwizard6358]

Same..

[@nikolatasev4948]

You evil Adblock-using person, don't you want to back hard-working content-creators by watching Omaze ads on their videos?

[@venmis137]

Lmao same

[@venmis137]

@@nikolatasev4948 I don't have an adblock and I've never had an omaze ad. Maybe they're only targeting americans??

[@Krrish85]

I used to work for a smaller company where the owners dad would travel to a children's home in the Ukraine every summer. He would fill up a trailer with clothes, food, glasses, wheelchairs etc. Even hospital beds and whatever he could get. Everyone who worked there would always contribute something and I always felt like everything we gave went straight to the children. No middleman or "overhead". Was really amazing! He would then develop the pictures he had taken and show us. It was really cool!

[@ronblack7870]

my dad would collect donations and take the money to ukraine where he would give $100 scholarships to needy students at the university where he would lecture every summer for free . he paid his own dime to travel and live there for 2 months. this was about 25 years ago and 100 bucks was a lot of money to them at that time.

[@Hyperian]

Omaze just turns into another trickle down business transaction where all the poor people pays out, rich people gets their fill, and other poor people pissed on.

[@Hyperian]

@Strauss you missed the entire point of the video then.

[@Hyperian]

@Strauss still wrong.

[@timfrolov7891]

@@Hyperian That's litterally what you said. " trickle down business transaction where all the poor people pays out". People pay if they want, regardless of their income. It's an fin game

[@fadingfin]

@Strauss The chance to get anything is so minimal you're just throwing away money so why do it? To feel good about charities isn't the answer as the video explained. Your contribution to the charity ends up being just a fraction of the money you paid after all.

[@sdh643fn]

@@timfrolov7891 it's a lottery that portrays itself as a giveaway, which is dubious. I think the main shiesty thing is that these ads are clearly targeted towards youth, advertising primarily on KZbin and social media to capture young people that don't know better

[@toffeebear7133]

They did a few big ticket house giveaways in the UK. One was a country house, new build, in an affluent area. What they didnt tell you was that it was built on a flood plane, and was repeatedly victim to flooding. I suspect a lot of the prizes were bought at a severe discount and then marketed heavily while hiding their flaws.

[@c0c0asauce]

As common as it is for expensive cars to be totalled with very low milage, I wouldn't be surprised at all if some of the cars they give away are salvage/rebuilt titles.

[@miked7728]

@@c0c0asauce Not defending Omaze, but I am hesitant to agree. They also offered a cash payout which would be advertised as the equivalent value of the car. The values they place never reflected there may be something wrong with the car itself. I also doubt they would just rely on the player not noticing there was something severely wrong with their price. The flood plane house was probably just a coincidence, although I've heard wise men say there are no such things as coincidences.

[@c0c0asauce]

@@miked7728 I understand where you are coming from but at the same time the chance of someone taking the money or the car is still a chance for the casino to reduce your payout. Its not very likely that there would be a catastrophic issue like a blown clutch in a give away vehicle but it is 100% possible for them to attain vehicles in a shady manner to save themselves money in the event that you took the prize instead of the money. Individual people are able to pull off salvage/stolen vehicle scams so I wouldn't be surprised if a company like this did it.

[@krazyhippy]

@@c0c0asauce they legally cannot give away a salvaged car. They would lose all customers if they were giving away damaged exotic cars.

[@c0c0asauce]

@@krazyhippy Actually, they can legally give away a salvage car. Besides there's more than just salvage titles that devalue a car.

[@jgn1977]

Next time I get mugged, I'll insist the mugger gives 1.5% of his proceeds to a homeless guy. That way I feel like I'm helping the needy.

[@rustler08]

15%*

[@bramo5901]

@@rustler08 10% of 15% because that's about how much of the money that goes to charity is actually used for charity

[@StarshadowMelody]

And then you find out the mugger was legit homeless- or going to be.

[@oceansunset6147]

He might be homeless

[@maemilev]

*Dude, Omaze is utilizing Florida only loop hole law in gambling! It doesn't require an independent group to validates winners!*

[@BasementMinions]

I was really curious about how a charity could afford to spend so much money on advertisements.

[@paulsz6194]

I also like to ask how much does their CEO contribute to this certain charity they are promoting. Is he on a reduced salary and giving a chunk to the charity? If they can't give me an answer, I don't donate!

[@newempire158]

Once I saw the celebrities I called BS

[@lordnass381]

@@paulsz6194 ok paul

[@alfsmith4936]

@THAT GUY Most of them see it as free advertising for their brand. The rest are naïve.

[@Youtubeuser1aa]

Nice

[@3jhe]

This is what happens when we, naive consumers, allow an organization's marketing message to take the place of our own DUE DILIGENCE! You are absolutely right, How Money Works, that we have nobody to blame but ourselves! Thank you for this great exposé! Share share share!

[@MatthewStinar]

Them: This raffle is for a good cause. Me: I don't gamble. Period.

[@TheBelrick]

What people dont understand is that the concept of "Non-profit" organisation is a complete lie. My own company has never made a profit. Ever. Funny enough every year it has 0 loss and 0 income. Funny that, almost like all the profits are distributed to the shareholders... I could literally advertise my business as a non-profit, just the same as every other racket. The actual profit for non profit organisations is in salaries and wages. Empathy is the product they sell and they make a damn fine living from selling it.

[@Mayurbhedru]

@@TheBelrick no non profit has some other restrictions too. Like they can not sell products and they have to keep their books open to public.

[@RickyT15]

@@TheBelrick You could also look at FIFA organisation a non-profit that has a rainy day fund in the billions.

[@paulsz6194]

I like to tell them, ill match my donation with your private donation dollar for dollar. They then leave you alone. Or tell them ill go to the charities website and donate directly there.

[@redwolfexr]

@@TheBelrick you are a bit confused about "profit" -- that is what you "distributed to your shareholders." But you are correct that many (not all) charities are run mainly to pay someone's salary. There are legitimate ones too - you just have to do research.

[@themaster8432]

The key words were: "if the public knew about this".. Often i have considered starting a charity organization, just to get rich, and then donate like 1-10% of the leftovers to the actual charities, like 99% of the currently existing charities do..

[@excitedbox5705]

Keep in mind that charities only pay out a fraction of what they raise. That means of the 15% only a fraction goes to the cause. A charity manager can earn $500k A YEAR. I think 1.5 cents of every dollar going to the actual charity should be illegal. Even 10% should be illegal because they claim you are giving to a cause, but the majority is not going to that cause at all. If I asked you for $100 to buy some school books and only spent $1.50-10 on books and the rest on PS5 games you would be pissed and likely not give me money again.

[@giacomu1]

murica, land of the fee, home of the slave.

[@excitedbox5705]

@@tmk5517 Yes, but a charity CEO shouldn't be getting a 500k salary. That is ludicrous. There are expenses that are justified and there are expenses which are not. Siphoning 98.5% of the money into various pockets is not. Charity raffles are usually only legal when the prizes are donated as well. This means a company will donate some product or service to be raffled off so that 100% of the money actually goes to the charity. In this case 85% is being spent on advertising which is not in line with any regular business. Most industries spend a much smaller percentage of revenue on advertising budgets and this would allow you to judge if the expense is justified or not.

[@excitedbox5705]

@@tmk5517 I don't know what gave you the perception that I didn't know that these charities paid expenses from the donations because that is the opposite of what my post says. My post literally points out that charities only use a percentage for the causes they represent. Your post reads more like the post of some shill trying to justify their actions and spin a narrative that these people should be getting rich from their actions.

[@sixpest]

Nah id be like as long as you can study and get it done good. You have won.

[@danielskinner1796]

@CGGS_Gaming Just a correction. Omaze don't pick the charity, the charity commissions the raffle. It is a "free" fund raising service that they "sell" to a charity. "Free" as in the charity doesn't pay and "Sell" as the charity has to be the one that OKs the use of their name etc as part of the marketing.

[@DavidPat]

I run a nonprofit and it’s important for us to have a direct relationship with our donors because we hope that they will also become volunteers and join us in serving.

[@kingali1606]

Glad you covered this. I am so done having these Omaze giveaways forced down my throat every time I watch KZbin.

[@HowMoneyWorks]

Now you're a smarter consoomer

[@AndrewB23]

This isn't going to stop that bud lol

[@NathanGriffithsNZ]

Sadly rings very true. Girlfriend worked for a children's cancer charity, one year they so badly mismanaged their finances there was only enough money to pay salaries and they didn't pass on any donations to children at all.

[@StoryTime333]

It’s always interesting when you run into a channel before it’s Inevitable climb. Good job sir.

[@szylaj]

I assume that when channel is small and Algorythm deems it good for some reason, it starts recomendig it, this is when you notice it, you noticing recomended channel is part of it climbing.

[@justacookie]

Great content! I'm happy KZbin recommended this in my feed. Subscribed!

[@SaintGBar22]

“Gambling is a vice” I agree so it’s really concerning that game companies like EA have gotten away with allowing kids to gamble to win a prize. It’s sick.

[@excitedbox5705]

Raid Shadow Legends is owned by an online Casino Company. They literally focused on/expanded into gaming, so they could sidestep casino regulations.

[@KA-vs7nl]

@@excitedbox5705 oh no not the regulations!! What ever will we do when they sidestep the regulations????? Statist sheep.

[@hideontrash3503]

you sir deserve way more recognition for having the balls to stand up to today's world of lies and deception

[@StudioSerinn]

Never heard of this company. But this isn't the first time we've seen this sort of business practice. Examples of this would be representative businesses for charities in the UK asking for £1 a month, but only having to donate as little as 1% of that to a charity that they are representing.

[@luizmelo8611]

"If you want to gamble, go to Vegas, if you want to donate to a charity, do it directly, don't half ass both and think you will be a lambo driving saint" Simply genius!!!

[@PS4sos21]

This is dam interesting. I never knew such crumbs went to the actual people that these charities claim to help... I'll be thinking twice next time. Next time I see someone on the street begging, Ill just buy them a dinner..

[@rars0n]

It's not the charities that are skimming the money, it's Omaze. Omaze is giving them practically nothing to begin with. Omaze is not a charity. I'd go a step further and say, yes, there are some scammy charities out there. Wounded Warrior Project is the first one that comes to mind. But there are plenty of legit charities out there that deserve donations. You just have to do your homework before blindly sending money.

[@drunkenhobo8020]

@@rars0n The Wounded Warrior Project seems a particularly insane concept anyway. So you're telling me the government sent a load of young men to invade foreign countries, get killed or maimed, then when they come back it's somehow _my_ responsibility to pay for their aftercare? All whilst the politicians who sent them there retire into extremely lucrative executive roles in oil companies or the arms industry?

[@rars0n]

@@drunkenhobo8020 I mean, you're paying for their aftercare regardless, with your tax dollars. Wounded Warrior Project more provides comfort items and support programs. As a veteran, it really annoys me when I am purchasing something and am asked to donate to a military charity. I hate being put on the spot like that, and I feel like I seem like a jerk for saying no, but I'm not just going to donate to some random charity without researching them first.

[@EMFAudio]

@@drunkenhobo8020 That one is like Goodwill too, and omaze. The money goes to the execs. Goodwill goes a step further because they're doing it with free inventory. 100% profit.

[@americanoutreach7496]

No one contributes to Omaze for charity, come on.

[@ruthe6017]

Exactly what I was thinking. I like playing raffles, lotteries or having a flutter occasionally, I do it for fun

[@ryanharris1124]

What you missed in this video is that they cannot require you to donate in order to be entered into the raffle. That would be illegal, there is an option to enter for FREE which is not something they are going to promote because they are in it for the donations but your welcome for the information. I hope you win but remember me!

[@fabianstrunk]

Yes but be careful to only enter three times maximum because each time you enter for free it’s 2000 entries and if you have more that 6000 all of your entries get deleted

[@danielskinner1796]

Remember it is NOT a donation. You are buying a ticket and service, just like buying a lottery ticket is not a donation to the winner.

[@joshwilson4168]

I got into a heated argument with the owner a couple years ago. He told me "we dont purposely steal money from people". Wouldn't give out any confirmation info for the people that "won". I found most winners were on their payroll as employees and i reported them to multiple agencies. Its all a scam.

[@notmenotme614]

I’ve always wondered if the cars even exist? Are they just using a hire car or stock footage, then there’s no car to give away and nobody wins.

[@lohostege]

I've always wondered how they where been able to afford the cars, but also being able to give money to charities. Now I kinda know.

[@sonik_75]

Great video mate, loved watching it. Its full of amazing content, and the script is really good. Great small, yet content packed video. A rear combo these days. Thanks, and subbed !

[@kyledavis4890]

I've never played Omaze... I sooner support a KZbinr by buying their book or perhaps using patreon. I seldom gamble anyway because, to me, gambling seems like a rich person's game.

[@billowen3285]

It's a dumb person's game

[@Rupertboijedi]

Rich people don't gamble, poor people do.

[@ruimpinho]

@@Rupertboijedi this. Or dumb people with money. Which will eventually make them poor.

[@chrissimonson561]

Thanks for the informative video. A few key things may have been overlooked here though. Number one being that unlike gambling, any "donation" or entry made on Omaze is tax deductible (up to the legal limit). So, while you are putting money in, you have practically a 100% guarantee of getting that money back at when you file for that tax year (again up to a point). Knowing this, the comparison to traditional gambling odds is remiss. Secondly, in order to distinguish themselves from a lottery, Omaze offers free entry to all of their experiences. How legitimate these are is, of course, up for question since they are pretty tightlipped about the actual selection process, but again, what casino or lottery allows you to enter for free? The answer is none of them. Neither of these points excuses or supports the amount of money they actually pass along to the "charities" but, it does dampen the image of casino gambling ring they are heavily portrayed as in this video. Thanks again for the great content, keep it up!

[@GY9944]

Well they claim to be practically “giving away” cars that have prices well into 6-figures... I’m surprised at all that anyone had to watch this video to figure out something was shady there

[@GeorgeOfAIITrades]

In theory, they could work with the car companies to receive some of those cars for the sake of giving away. The car company would write it off as a donation. But yes. Some of the cars aren’t within the realm of that being a realistic possibility.

[@stanleychen3298]

I’ve always known that Omaze is shady but I watched the video cuz I wanted to know how shady in specific

[@MattMoore1]

Or you could just read their website.

[@Kennedyadventure]

@@SpartanArmy117 Totally agree!

[@Gabito04]

How ironic, I got an Omaze ad at the end of the video.

[@lord3148]

Great video, well researched and nicely edited, how do you not have more subs?

[@HowMoneyWorks]

I suppose the KZbin algorithm just hasn't worked for me yet. Fingers crossed!

[@tacticalwizard6358]

@@HowMoneyWorks Why don't you become a client of Omaze? Will probably allow you to gain "15% of a million" (jk, you won't need that)

[@ManaTy7274]

I actually took part in an omaze raffel once and was thinking about doing it again. I love cars and even tho in the back of my head I was thinking about the topic of the video, I didn't really care because my love for the possibility of owning an old japanese car was greater. I am really happy I found this video to stop me from helping these kind of companies to earn even more, maybe I'll just go work for my car and spend a little to a real charity ^^

[@oceansunset6147]

Whenever we spend money on anything you are helping a organisation to make money whether we buy an orange from the fruit and veg man at the market or buy an iPhone from one of the richest companies in the world …. every money transaction is part of a pyramid system.

[@shadmansudipto7287]

I always had a feeling that something fishy was going on.

[@MursAlison]

I was like this seems to good to be true.

[@niccarpy]

"This is not an attack on George Clooney, or the KZbinrs taking the sponsorship deals, this is an attack on you." Me: I didn't even know charity was involved, I just wanted a mansion!

[@BillysWild]

I’m just going to buy my Lambo, and personally give money to people who are in need.

[@hazardeur]

you could just give them a drive in your lambo and it would still be waaay better then what they get from these scum charities

[@bumblebee6875]

@@hazardeur bro what? do you even read what you typed?

[@Aditya-wp7qe]

Finally someone said what I have always thought from the beginning when I saw the omaze ads. You have earned a sub from me my friend.

[@Tacit]

Thank you for bringing this to light. It's sad that my favorite youtubers don't scrutinize this hidden scam. If you want to donate, go donate to the charity directly.

[@c.erine78]

I fell for them one time. I got bad vibes from them and have even stopped following people who promote them. Today on FB a certain person I respected started promoting them, he has a foundation that gives scholarships for "working" class jobs. Shocking to say the least. Thank you for having an explanation of what and who they are, it reaffirms my vibes.

[@evanbarnes9984]

Thank you! I've wondered about Omaze for a while now

[@speedkilla2303]

I've been waiting for this video for a long time. thanks for shedding light on this organization!

[@AFAndersen]

"Do you remember those non-profits?" 7 seconds in, my brain changed the name Omaze to Omegle.. so I'm not a good person to asks

[@84dhanreddy]

Your videos are awesome man. I genuinely want channels like this one to grow so that more people are better informed. Sadly I keep forgetting to hit the like button.

[@johnmckenzie6661]

Omaze is legally required to allow you to enter the raffle without paying money. By allowing you to enter without paying, they avoid charges of running an illegal gambling operation considering all the donations are technically voluntary.

[@brois841]

Well, we know who's NOT getting an Omaze sponsorship deal! Appreciate you digging for details and presenting them so well, I always wondered about these schemes. It's common knowledge that it's easier to have people part with their money when the decision is emotional rather than logical. That's marketing 101 and clearly Omaze is banking on our emotion to want to have an awesome unattainable (to most) car and the ability to justify it by associating it with a charity. Very clever and conniving a at the same time.

[@Gandi2000]

*"If something is too good to be true, then it's most likely too good to be true"* -Sun Tzu Art of Logic

[@krastyokirov4459]

I really liked the way you finish the video. I hope there is more people like you

[@allseeingeye93]

"If you have watched KZbin at all in the last year or so, you no doubt know what Omaze is." I watch like 6 hours of KZbin each day, 7 days a week, and I've literally never heard of Omaze.

[@krazyhippy]

I am the exact same as you. I watch about 8 hours of KZbin a day and only heard of omaze about a week ago.

[@Samurai31631]

Just learned about it on this video

[@gaijinflyer]

The irony of having an Omaze ad immediately following the video.

[@matthewmitchell1580]

Conclusion: Don't blame the scammers. Blame the victims. O-kay then.....

[@mission772]

He isn't blaming the victim. He's blaming the ignorant greedy people that "give" the money. All they want is the car. So if everyone actually worked for what they wanted instead of hoping for a free handout companies like Omaze wouldn't exists.

[@sdsorrentino]

"Not for Profit" is a TAX STATUS, not a business plan.

[@JGS123WRPTP]

I was under the impression & it’s also documents that Omaze has partnered with a fair few UK based charities. Teenage Cancer Trust, The British Heart Foundation, The Princes Trust, and NSPCC. They’re a fundraising partner so obviously they’ll take a cut. It’s much like Camelot.

[@bindingcurve]

Just makes them look more above board for the rest of their raffles.

[@martijnp4313]

I saw some ads for Omaze and always wondered how that worked - never bothered to look it up. Thanks for the explanation!

[@fsfaith]

To add to this. When I was looking for my first job after Uni I was invited to tryout for "marketing" what it actually was was standing in the streets and getting people to sign up to montly donations to charities. Whilst getting paid for this is not harmful because afterall if you aren't there asking people in the public chances are they'll never sign up. The most egregious thing about it was that they take 50% of the donations as commission. And the person showing me the ropes that day looked me straight in the eye and said you do this for a year and you can get your own team where you can earn even more. So how little of the cut is actually reaching the people in need is depressingly small. I noped out of there straight after that. I get that you need to work for a living but I can't in good conscience know that I'm taking a sizable cut of their generosity.

[@ChineseKiwi]

2:35 - This is why in Australia, we have a limit on the prize giveaways so local raffles aren't affected. If it is over a certain amount and your giveaway is a game of chance, as gambling is, you need a gambling license for this and this license number must be displayed clearly everywhere the user can see it e.g. in ads, on the tax receipt, on the raffle ticket itself...

[@user-kd8ji7rt4c]

Its simple, they collect more money than the cost of they're giving away

[@paulsz6194]

This is like another form of affiliate marketing, but in reverse it's the charity that gets a small cut in return for allowing a "marketing company" to promote their charity . In effect the marketing company is buying the rights to use the charities name in order to legally facilitate this lottery, when in fact it should be the other way around.

[@ammoandy507]

I max out my donations on everything I want by hitting the “enter without donating” option. Not sure if Omaze filters those entries but since it’s a raffle legally they have to give you the option

[@theravedaddy]

They probably get delt with the same way as cuckerburks 'report this chinese scam ad as a scam or misleading'..... ie, push this button and... 'seeya'.

[@miked7728]

I did the same haha! I was looking for this comment.

[@ramizr]

In shorts, if I really wanna help people , I'll give it to em directly not even through a charity and nah ...I'm not interested in winning a Lamborghini by spending like a few dollars ! Beautifully explained btw , subscribed !

[@JasonPrice1]

I never felt good about Omaze. I have never supported them and this just makes me not do so for sure. I completely agree with your summary. Donate or gamble. Don't try to do both at the same time.

[@Chahlie]

Ah, but I gambled, and won, a 50/50 draw. I invested it and in 6 months have already donated back half of what I won, and will continue to do so for my lifetime. :)

[@theracer6882]

I hope this video goes viral and people realize their chances of winning a car is slimmer than winning lottery

[@refreshreload]

Moral of the story: scroll past donations on the prize page and click “Enter without contributing”, enter your info, then donate the amount you were about to give, straight to the charity. Take that Omaze 🤣 If the average person read the Terms & Conditions OR even took the phrase “no purchase necessary” seriously, they would know. But… what if you win a lambo, and people find out you didn’t donate…you’ll be cancelled! Well, if you win, donate after. If you didn’t win, you didn’t lose either! Yes, I know this would bankrupt Omaze, but like he said, we are the problem. You and 10,000 other suckers just paid for someone’s supercar, and both founders’ too 🤷‍♂️ Also, Signed in just to like and subscribe. Thanks for making such an informative video. I know everyone has suspicions about Omaze. GRAHAM STEPHEN NEXT!!! PLEASE spill the tea, I’ve been watching him for so long! 🤣

[@nunya2814]

Ive known this for yrs, i hope this goes viral so more people actually learn most charities are a scam, the best way to affect change is to do it in the community you live in, more hands on, with or without large monetary donations. Ive found most people in the positions to affect the greatest change, do just that, but usually for the wrong people.

[@kanyda1]

If (when?) your channel pops off it will be funny if Omaze is the first company to offer you a sponsorship.

[@HowMoneyWorks]

I can't imagine they will anymore but hey it would give me a good chuckle.

[@evannibbe9375]

@@HowMoneyWorks Apparently someone in the comments got an Omaze ad

[@rfmarves]

Right in the middle of watching this... and up comes an Omaze ad... Incredible irony

[@fastfoodyums]

I didn’t even know they donated to charity at all lol. Thought it was just raffles

[@AdrickBruno]

The only flaw I found was that on one of the Donut Media videos ( my guess was when they were promoting the new Corvette giveaway for omaze) James actually gave the name of the institution the money was going for and it was the hospital where he was treated after he almost died... Other than that, even on the same channel, no more mentions.. Great work man +1 subscribe

[@notmenotme614]

0:25 Another way that charities are a scam… When they say they’ve raised $130 million to install solar panels in some remote African community. Which company are they using to do this? The answer is nepotism. The “charity” will give the contract (basically a $130 million cheque) to a close friend or relative, or one of the charity CEO’s other businesses. Do we get good value from this nepotism? Not when they’re not accountable for the work they’re doing, for example they could install just 1 crappy obsolete solar panel in just 1 community, that makes little difference and then pocket the rest of the $129,999,999. The BBC did an investigative documentary on a “charity” that claimed to build schools in Vietnam, Thailand or Cambodia. The “charity” said they had spent millions on computer equipment for the kids to use. When the BBC investigative journalist went to these countries, the schools never even existed. Looking into their accounting, the journalist found the “charity” had spent millions on “consultancy fees”. But who was the consultant?

[@RemotHuman]

Remember, not all charities are like this, you can do research or rely on someone who's judgment you trust. Many charities really care about doing good

[@markk3453]

i did a test. Omaze said that legally " no purchase was necessary" . so I signed up but never heard from them after. I don't want to donate to this scam since it should be at least 25% donation if not 50%, not 15% and under.

[@2011blueman]

Really? They email me all the time and I've only done the free entries.

[@knytrydr73]

Than you should be talking to your elected leaders that wrote the laws that allow this to happen.

[@RossAlexanderSmith]

I can't but help and laugh at the irony that personal finance ads pop up during the breaks. The only thing that would have made this better would be an Omaze commercial in there.

[@conradbielicki774]

How charities can sometimes be used for political campaigns would be an interesting bit of spice to add here

[@JohnS-il1dr]

This! You ever wonder why every former president has his own library? It falls under non profit but we all know its legalized money laundering

[@denisemcdougal6445]

True

[@sprinterfix]

Great to see this channel growing!

[@monteb6276]

On top of this i would not be suprised if 95% of the winners of the cars sell the cars within a year as the running and maintenance costs of such cars is pretty high

[@calebgao6931]

95% of the winners are probably payed actor, why would they bother to give away a 200k car when they can pay someone 200 bucks to act like they won the car, yet nobody can prove that. There were so many similar scheme like that were already proven they never give away anything.

[@lasagna1316]

6:53 IDK I recognized Make-a Wish, meals on wheels, ST. Judes, and the Peterson automotive museum. This video is ridiculous 🤣

[@Durronko]

I always use the free entry to participate. I've never won anything and probably never will lol

[@paulsz6194]

Free entry usually means they are data harvesting you to sell your details to another marketing company.

[@Durronko]

@@paulsz6194 Probably yeah. they're also quite spammy. I wouldnt advise it xD

[@AndrewB23]

@@paulsz6194 sure bud

[@Chahlie]

For everyone thinking that the luxury type goods are fake, there is always a cash alternative. I have run small local charity raffle fundraisers where companies have donated awesome prizes which are not fake. I have also won a 50/50 raffle in my area, which was substantial. I would rather put my money into smaller raffles than the big national ones. It's all fun and I love seeing pics and videos of the winners :)

[@sarges1712]

you definitely have to be careful when giving to charities. There are so many out there who only put a small fraction of that money towards helping people. On top of that, as mentioned, these non-profit charities have the CEO and others making bank all while blowing through cash to ensure they're not making a profit and keep that non-profit designation. Far as I'm concerned it should criminal. All charities should be giving, say, 80% toward helping people. With the remaining money for office, staff, etc.

[@robryan2079]

"don't think you'll be a Lambo driving saint" ... I was drinking coffee while hearing that, almost spit it out right here in Starbucks!

[@hoytbenson6016]

Omaze: …and when you come for the pay, I’m gonna rip your eyes out, and I’m gonna make a fortune. The good news Vinnie is you’re not gonna care cause you’re gonna make so much fucking money Charities: Aight I buy that. Thank you

[@TigburtJones]

It would be nice if you did some research on these topics so that we could know more about these charities and things. You’re well spoken and I think you could be more valuable to the community with some more research

[@sir_coma60]

The moment he referred to omaze as a company was enough of a red flag for me.

[@prettykamenke2820]

As long as they are helping the needy. And of course the donators should be happy too. Of course the company should need a little money to expand and keep the company going. All this is for a good course to me. Everybody's happy.

[@JDuhoh]

I disagree that the fraction could still be considered a good outcome. That doesn't look at the system as a whole. The people par-taking in this are executing an opportunity cost... across a population, more money that goes into casino pockets means less money available to go to other endeavours, and possibly has other harms as well... is that "externals" or something?? As example, either your channel or another discussed the plastic "recycling" phenomenom, and how companies in China were ekking out a small profit from doing it, only for the polution and health impacts from the process to land on the govt leading to a note-worthy net-negative and playing a part in why they closed that western green-wash.

[@josiahkane9883]

This is an excellent point. The most prominent externality of a bad charity raising money is that good charities don't. Most people (myself included) don't tend to weigh buying a chocolate bar against providing mosquito nets. We weigh building wells in the Sahara against the mosquito nets, and weigh the chocolate bar against a tropical smoothie. For some people that's thought through; this weighing up is a line item in a budget saying x% or £y goes to some good cause or another. For other people it's instinctive; they give money based on feelings somewhere between guilt and compassion. In both cases, building more wells in the Sahara means less money to mosquito nets. Now people need water to live and they need mosquito nets to not die. I certainly don't begrudge either of those causes getting a slice of the giving pie. But if we're talking about some chain of bureaucratic at best organisations creaming off 98.5% of the money that has been consciously or subconsciously allocated to doing good in this world, we should begrudge them the dollars that would otherwise have gone usefully on water mosquito nets rather than celebrate the cents that made it through.

[@excitedbox5705]

Exactly. There is also a real problem with people assuming charities don't actually spend the money on the cause and use that to rationalize not to give at all. If I ask you for $100 to buy text books but spend $1.50 towards books and the rest on entertainment, you are not gonna give me money next time. If my sister asks for the same, you might think twice about it because you will consider how likely it is that she will do the same.

[@THE_EXPERIMENTER]

When you asked me if I remembered any of the products they sold, I instantly remembered James Pumphrey advertising an Audi SUV of some sort and the charity was for the hospital that saved his life.

[@TomekSw]

I'm watching KZbin practically 24/7 and never heard about Omeze LOL

[@thelukeoffice4713]

Love the info you're bringing with your videos, keep them rolling, I subscribed :D

[@HowMoneyWorks]

Awesome, thank you!

[@AlexIsUber]

I feel like it died in US and it’s huge in UK now

[@filipnowak3748]

Brits are naive