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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.

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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.

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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.

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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:

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  • 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

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Robert Locke

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

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Last Updated on May 15, 2019

How to Tap Into the Power of Positivity

How to Tap Into the Power of Positivity

As it appears, the human mind is not capable of not thinking, at least on the subconscious level. Our mind is always occupied by thoughts, whether we want to or not, and they influence our every action.

“Happiness cannot come from without, it comes from within.” – Helen Keller

When we are still children, our thoughts seem to be purely positive. Have you ever been around a 4-year old who doesn’t like a painting he or she drew? I haven’t. Instead, I see glee, exciting and pride in children’s eyes. But as the years go by, we clutter our mind with doubts, fears and self-deprecating thoughts.

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Just imagine then how much we limit ourselves in every aspect of our lives if we give negative thoughts too much power! We’ll never go after that job we’ve always wanted because our nay-saying thoughts make us doubt our abilities. We’ll never ask that person we like out on a date because we always think we’re not good enough.

We’ll never risk quitting our job in order to pursue the life and the work of our dreams because we can’t get over our mental barrier that insists we’re too weak, too unimportant and too dumb. We’ll never lose those pounds that risk our health because we believe we’re not capable of pushing our limits. We’ll never be able to fully see our inner potential because we simply don’t dare to question the voices in our head.

But enough is enough! It’s time to stop these limiting beliefs and come to a place of sanity, love and excitement about life, work and ourselves.

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So…how exactly are we to achieve that?

It’s not as hard as it may seem; you just have to practice, practice, practice. Here are a few ideas on how you can get started.

1. Learn to substitute every negative thought with a positive one.

Every time a negative thought crawls into your mind, replace it with a positive thought. It’s just like someone writes a phrase you don’t like on a blackboard and then you get up, erase it and write something much more to your liking.

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2. See the positive side of every situation, even when you are surrounded by pure negativity.

This one is a bit harder to put into practice, which does not mean it’s impossible.

You can find positivity in everything by mentally holding on to something positive, whether this be family, friends, your faith, nature, someone’s sparkling eyes or whatever other glimmer of beauty. If you seek it, you will find it.

3. At least once a day, take a moment and think of 5 things you are grateful for.

This will lighten your mood and give you some perspective of what is really important in life and how many blessings surround you already.

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4. Change the mental images you allow to enter your mind.

How you see yourself and your surroundings make a huge difference to your thinking. It is like watching a DVD that saddens and frustrates you, completely pulling you down. Eject that old DVD, throw it away and insert a new, better, more hopeful one instead.

So, instead of dwelling on dark, negative thoughts, consciously build and focus on positive, light and colorful images, thoughts and situations in your mind a few times a day.

If you are persistent and keep on working on yourself, your mind will automatically reject its negative thoughts and welcome the positive ones.

And remember: You are (or will become) what you think you are. This is reason enough to be proactive about whatever is going on in your head.

Featured photo credit: Kyaw Tun via unsplash.com

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