Advertising
Advertising

8 Secrets Charities Don’t Want You to Know

8 Secrets Charities Don’t Want You to Know

It is more difficult to give money away intelligently than to earn it in the first place. – Andrew Carnegie

The next time you want to send a text message from your smartphone donating $2 to disaster relief, think again. Unfortunately, not all of that money will go to helping the victims. In 2011, Americans donated $200 billion to about 1 million charity organizations. When picking a charity to send your donation to, you have to do your homework. Here is a quick guide to some secrets that charities might not always be willing to share.

1. Is it a registered charity?

Some charities operate without any paid employees, and so they do not have to be registered as a charity. The limit they declare is usually below $50,000 annually. But all the other charities who claim to be registered should be checked out by consulting the list at the Internal Revenue Service (IRS). This is important because of the tax deductions available. It will also ensure that you will not give to those charities who are flying under the government’s radar. In the UK, the Charity Commission is the government’s regulator on charities.

Advertising

2. How much is spent on overhead

Each charity will have enormous overhead costs regarding staffing, running costs, and fundraising. Inevitably, a part of your donation will go towards these costs. A good rule of thumb is that 60-75% of donations should go to the actual cause and 25-40% towards administrative expenses. But some charities cut back on expenses, which leads to more waste. Check to see if this information is available on the charity’s website before making a donation.

3. Beware of phone calls

Some charities use companies who are for-profit fundraisers and they use telemarketing extensively. Because of the costs involved, it is unlikely that the charity will receive more than 10% of the amount you pledge.

4. Some charities pay enormous salaries to their CEOs

Major charities have to be run as businesses. But disturbing news often comes to light about how much they are spending on salaries and bonuses. Sometimes, funds raised actually go to the charity’s pension funds, rather than to the poor, sick and needy. This information is rarely revealed. Charities defend paying high salaries to executives because they are in demanding roles, and clever fundraising policies have to be thought out and implemented. The site Charity Navigator believes that salaries around the $1 million mark are unacceptable.

Advertising

5. Think carefully about donating to short mission trips

These short mission trips to help build houses, schools and orphanages in third world countries seem to do more good for the volunteers, than the poor people. Think about these facts, before donating:

  • Many trips cost as much as $30,000 to sponsor.
  • Such large sums could actually be used locally to give employment to builders and workers in the country who desperately need money to buy food. Unemployment in these countries can be as high as 30%.
  • Volunteers can send the wrong messages in that they know better, can do the work faster and they do not train the people there to deal with their problems in the long term.

Organizers of short term mission trips should focus more on the permanent impact, and how locals can be more actively involved after the volunteers have left. Ask if they are approaching the mission in this way before deciding whether to donate or not.

6. The good, the bad and the ugly about celebrity charities

When you think about Bob Geldof and Bono, who have supported enormously successful charities to fight world hunger and poverty, you can have nothing about admiration for them.

Advertising

But some of these celebrity charities have made zero impact when auditors revealed that considerable funds were missing or unaccounted for. This was the case with Madonna. She was going to build a girls’ school in Malawi. Auditors revealed that almost $4 million went missing from the charity’s funds. Madonna is now contributing $11 million she has raised into Malawi-based organizations to help them build the schools that are needed.

Wyclef Jean, the hip hop icon, founded the Yéle Haiti Foundation after the disastrous earthquake in Haiti, which killed up to 300,000 people in 2010. He is now facing lawsuits about tax fraud and whether he gained financially from the charity he set up.

7. Beware of fundraisers in the mall

How many times have you been approached in the mall or on the street by a fast-talking and convincing fundraiser for a very worthy charity? This is a bit more sophisticated than the telephone calls you might receive at home. Here is what to look out for:

Advertising

  • They do not want a one-off donation.
  • They want a monthly commitment which could work out to be $500 annually.
  • They offer to fill out a form and all you have to do is sign.
  • They are trained in using persuasion techniques by the companies who are raking it in.
  • As some of the fundraisers (or “chuggers” as they are called in the UK) earn $13 an hour, you can imagine how much money actually gets into the charity’s coffers.

The whole concept of giving to charity should be based on a desire to help and not from being pressured in any way by a fast-talking fundraiser!

8. Do some detective work

Before deciding on donating to any charity, check out the following information. All of this should be easily available on the charity’s website. Failing that, there should be information leaflets available. This is what you should check:

  • The annual report
  • Names of directors and patrons
  • Audited financial reports
  • Specific projects and how the funds are used
  • Statistics on completed projects

Charities are doing magnificent work. You just need to do some homework to make sure that they are managing their funds in the best possible way and that they are not using doubtful tactics. If you are unhappy about this, you can always volunteer to help local charities in your area.

Featured photo credit: Faces helped by charity: Water/Sacca via flickr.com

More by this author

Robert Locke

Author of Ziger the Tiger Stories, a health enthusiast specializing in relationships, life improvement and mental health.

10 Reasons Why People Are Unmotivated (And How to Be Motivated) 12 Ways to Work Smarter, Not Harder to Be More Productive 10 Simple Morning Exercises to Make You Feel Great All Day What Your Fear of Being Alone Is Really About and How to Get over It Write A Personal Mission Statement to Achieve Your Goal More Easily

Trending in Leisure

1 What Should I Do Today? 30 New Things To Do Today 2 Enjoy Crafting With This App, It Offers 1000+ All Level Crafting Lessons Online 3 How to Have a Great Dining Experience the Budget-Friendly Way (From a Restaurant Insider) 4 Let This “5 Minute Journal” be Your Kids’ First Ever Mindfulness Journal 5 Walking 2 Dogs or More has Never Been Easier With This Smart Leash

Read Next

Advertising
Advertising
Advertising

Last Updated on February 11, 2021

The 20 Most Creative Instagram Accounts That Will Inspire You

The 20 Most Creative Instagram Accounts That Will Inspire You

Instagram allows you to see exactly what inspires people and how creativity is drawn from their everyday life. We use Instagram to capture what makes us smile, what brings joy to our life, and what we are passionate about, and the accounts listed below are sure to inspire you in turn.

Here are our 20 top creative Instagram accounts that you should be following today.

1. Humans Of New York

Brandon Stanton walks the streets of New York City taking street photography, and he gets his subjects to open up about life details that even many family members may not know about them. It makes you smile and connect with the images at a new level.

 2.  Paris in Four Months

Carin Olsson moved to Paris and is documenting every part of her experience, from the macaroons to the Eiffel Tower with all of its shimmering lights. If you want to go to Paris but can’t get there today, Carin will take you.

3. Civilized Caveman Cooking

George Bryant offers up more than his love for cooking Paleo cuisine as he shares more about life, joy, and happiness. His coined hashtag is #hugsandbacon.

4. Andrew Knapp

Andrew has taken the world by storm with his adorable version of Where’s Waldo? His version is Find Momo, and stars his border collie.

Advertising

5. Idafrosk

Ida Skivenes has developed a knack for food art. From the world of Charlie and the Chocolate Factory to Strawberry Fields Forever, she has recreated it all with food.

6. GrandmaBetty33

Grandma Betty is fighting cancer and is inspiring others to smile and be happy in life. She brings a smile to your face instantly and is like having your grandma right beside you.

7. Maya_on_the_Move

Tania Ahsan captures the world of her cute bulldog, Maya, on her adventures in New York. Maya makes appearances that will make you smile, laugh, and inspire you to go out and create something special.

Advertising

8. Leoleoparis

Leo captures the life on the streets of Paris. Most of his work is done in black and white, offering that iconic Parisian look.

9. Jacob Santiago

Jacob Santiago creates stunning, vibrant images around New York City, showcasing the architecture and streets. I’m sure you haven’t seen the streets of NYC like this before.

10. Julie’s Kitchen

Julie Lee showcases how everyday produce can create colorful art designs. At first glance, you think it is just a design; then, a second take illustrates that it is really fruits and vegetables.

11. iloveplaymo

iloveplaymo brings together photography and Playmobil toys in action. The images are up to date with current world events and everyday life.

12. “Red” Hong Yi

Red Hong Yi loves to paint without a paintbrush. Her style uses daily items to create lovely images.

Advertising

13. Alexis Diaz

A breathtaking artist from Puerto Rico who loves to paint murals. Alexis’s work is featured all over the world.

14. Murad Osmann

Murad Osmann is a music video producer, but his claim to fame on Instagram has been his photographs with his girlfriend leading him by her hand.

15. Simone Bramate

Simone Bramate is a storyteller who just so happens to take delightful photos as well.

16. Willie Kessel

Willie Kessel brings beach life right to your smartphone. Amazing surf and lifestyle images that take your mind off of all of the work and stress in your life.

Advertising

17. Nick Ulivieri

Nick Ulivieri is a talented photographer who loves to capture the windy city of Chicago and skies, especially during storms. His images are gorgeous and make you realize how wonderful life really is.

18. Jo Jerry

Jo Jerry’s landscape photos around Santorini, Greece, make you want to book a flight immediately. The bright colors and simplicity in the images make his photos stand out from the rest.

19. GoPro

GoPro uses fan-sourced images on their account that are all captured with a GoPro. Creativity to the max is used in these images and range from the grocery store to incredible surf.

20. Vin Farrell

Vin Farrell is a creative who works on the agency side for large clients and has a knack for photography. His iPhone captures amazing aerial images around NYC and the world.

Featured photo credit: Andy via flickr.com

Read Next