Why do charity organizations only give a small percentage to the people that need the help?

Question

the CEO'S always get a hugh salary from charities and the people that really need the money just get a very small percentage, why is that?

Answer 1

Executives like to live well.

Answer 2

There are many, many organizations that help the needed and NONE of the people who run the organization make ANY money. The problem is most people don't know about them because they don't even have enough money to advertise. Once an organization is large enough to advertise on television or even, via mail, it is making enough money to sustain at least a few full-time employees. A barrier to assistance is that people assume only the big name charities are legitimate. I worked on the Katrina efforts and was turned down by people who wanted to donate but who only wanted to give to the Red Cross. Well, the Red Cross was turning away donors and the small, non-profit I was helping was feeding about 500 people per day with NO government assistance. Yet, time and time again people told me they would rather throw things away than give to a small non-profit.

A way to circumvent the greed of some of the big name charities is to find small organizations contributing to the community and donate time, expertise or money, if possible. It is much more rewarding when you know your contribution is going to help the people who need it and not to line some executive's pocket.

Answer 3

Because they can.
The Executive directors of non-profits have fought long and hard to be allowed to use the salaries of corporate CEOs as the benchmark for their own salaries. They claim that their work is equal in relevance.
The law also allows that a non-profit organization donate at least 5% of its revenue to the charity that justifies its existence. From those 5%, they can deduct another 2-2.5% for administrative and managerial cost.
So the bottom line is that a charity or non-profit organization must only give away 2-2.5% of what it takes in.
There are several well known foundations that do just that and the rest of their donations are well invested, often with different names. Especially churches invest in the market under other names.
How do I know this? Because I worked in the investment industry and have seen it.

Answer 4

Simple. They have to pay all the people who run the organization. It's always a good idea to find out what percentage is actually given away, then you can make intelligent decisions about what charities you want to support. Some charities have a very small percentage of administrative costs.

Answer 5

Some charity organizations only give a small percentage to the people that need the help because there is a lot of money needed to run the organizations themselves, they have to champagne and organize and advertise, they do mailings and TV ads.
This doesn't pertain to all of the organizations though, there are a lot of nonprofit organizations that give 100% of the money they make to the charity they represent, their are more so of the nonprofit than their are the ones that take part of the money, you just have to research and know which ones to give your money to.

Answer 6

That is a very general statement. There are some that take money for their own expeneses, and maybe a small amount of those are corrupt, but there are many like World Vision and Feed the Children that advertise that 100% of the donated money goes to the causes, and it does.
Just check the organization out before you give - others will advertise 93% etc. to help pay their bills.

Answer 7

I would just like to chime in with the "not all charities take large percentages of income for overhead" crowd. I work for one of the non-profit: a feed-the-children, save-a-third-world-country charities that were being blasted by an earlier answerer. We live and work in Zambia. I use my own money to work here, and contribute my own money- a lot of my own money- to the kids I serve. It is very true that the small organizations that are fair in their dealings are not frequently heard of because they don't advertise on TV. Check out idealist.com if you want to see some of the charities that are contributing almost 100% of their profits to the people they serve.

Answer 8

They are all Crooks, everyone of the feed the children, help this third world country, help these poor people, help these aids victims. It's all BS. Look at that fat blond cow that you used to see on tv standing around all the starving kids, you trying to tell me she wasn't shoving 4 pizzas and 6 litres of Pepsi down her gullet every day. She didn't get that 100 pounds of chewed bubble for an as.s by eating rice!! A friend of mine imports syringes to Senegal, I went there once for a holiday and we toured around and every one of these so called "charities" had huge gated houses in the posh district and were cruising in Mercs, or Land Rovers. The governments of these countriesw are a plauge on humanity. The charities are fiscal vampires, that will suck the life blood from you to fatten there coffers then spit the remainder on the people that need it. When you see that little boy with flies crawling on his face, don't feel bad, wonder how come there are so many. A spray of sugar water maybe? Our for fathers fought for the life we live, why don't they fight there government for a better life. Because it's easier to sit around and hump all day spit 20 kids out, shed some tears for the camera, and the westerners will help us. You want to help someone, help the homeless family, living in the shelter in your city, help the woman and kids who have been beaten half to death and live in fear of a maniac husband in your city, help cancer research, heart foundation these are things that are probably going to kill YOU, or your family members. When the |Tsunami hit the west sent Billions in "Aid", but when Katrina sunk New Orleans what did the world send, other than Canada and the UK they sent an overwhelming "HOORAY DOWN WITH AMERICA" wake up.

Answer 9

its a sad fact that most charities spend most of the money on fund raising and expenses with only about 10% going to support whatever the charity is suppost to be for. a few do better [salvation army] and many do worse [ peta , friends of animals]. its big business and ablut all you can do is check each one out before you open the checkbook

Answer 10

Bcoz they gotta have high paid jobs to make sure that your 1%


Yes your 1% that you kindly donated goes to the right place and not some scumbag just putting it in his picket like some governments do


Hurt me too much, I never donate now. Except to Jehovah's Witnesses, they do not waste money

Answer 11

Not all do that. Children International gives 80% to the children and the rest is for salaries and maintenance.