Matty-ice1

So clarify something for me please, are you purchasing the swag items from the charities or do they donate them to you?

What do you mean by getting dinged? As in, having to pay more taxes because you'll max out your write-offs?

So shipping isn't even included? What is the 40% going towards then? You're keeping $10/ box to just account for packing them up?

To piggyback on your ethical standpoint comment, OP should maybe look to get corporate sponsors to cover the cost of shipping and other overhead costs that stem from CharityCrate so a higher percentage will go to the actual charity.

Because as of right now, what this seems like is that OP is charging the customer for free materials provided by the chosen charity, taking 40% of the proceeds for himself, and then donating just over half back to the charity. What I'm worried about is that you're essentially asking some of these charities to increase their marketing budgets (in order to supply the promo materials and swag) and then hope that the donations actually come out ahead.