Selena Gomez's Rare Beauty gives 1% of sales to mental health; what is the fund and how does it work?
Selena Gomez's Rare Beauty launched in 2020 alongside the fund. The initiative set a goal of mobilising $100 million over 10 years to support youth mental health. The model works in a very simple way. A portion of the brand's sales supports the fu...

It contributes 1% of its sales to the Rare Impact Fund, and was established to expand access to mental health services and education for people who are young.
When was it launched?
Selena Gomez's Rare Beauty launched in 2020 alongside the fund. The initiative set a goal of mobilising $100 million over 10 years to support youth mental health.ALSO READ: Dallas began building a $110 million park over a freeway in 2009; 3 years later, Klyde Warren Park became a major attraction
The model works in a very simple way. A portion of the brand's sales supports the fund. Meanwhile, donations from individuals, foundations and corporate partners provide additional funding. The 1% commitment is not the same as donating 1% of profits.
The fund supports nonprofit organisations working on youth mental health. It includes access to care, mental health education and efforts to reduce stigma.
Scale of the initiative
The fund's published impact figures reported $30 million mobilised and 30 nonprofit partners across five continents as of August 2024.ALSO READ: Ripple billionaire Chris Larsen's family bought a 46-acre Napa estate for $13.5 million in 2025; inside its 5 homes and 4 vineyards, and how a school became a luxury estate
On retail partnerships, Sephora has run special fundraising campaigns linked to Rare Beauty products. In October 2025, it announced a limited three-day campaign in which 100% of sale of selected news Rare Beauty fragrances would be donated, subject to the campaigns' participating markets and terms
The broader business model is that Rare Beauty links commercial sales with a social cause. Its regular contribution is supplemented by separate fundraising efforts, rather than relying on product sales alone.
ALSO READ: Inside Drake's 50,000-sq-ft Toronto mansion, The Embassy, built to last 100 years; it has an NBA-size court, custom piano, crystal chandelier and a 44-foot-high great room; what makes it stand out?
Selena Gomez's Rare Beauty combines its commercial activity with philanthropy. It does not entirely rely on one-off donations or fundraising events.
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.