How much of what I donate actually goes to the people who need it?

Question

With all the donations we make to charity, how much goes to the needy? And where does the rest go?

Answer 1

If you ever read about my country's news, you'll realised a lump sum of funds was misused by their own authority & staffs. Every year, my country will hold a few big charity events and the most prominent event will be NKF charity. And this charity event is supposed to be a non-profitable organisation. This charity show can raised funds up to $3 - 8 million in a single day event.

Our local people only found out the scandal after someone saw that 1 toilet's watertap is made of gold and the toilet bowl cover is made expensive material. And some issues going on between a reporter and a staff authority etc. This scandal I'm unsure of what happened actually. All we know is our donations has been misused.

After this scandal was out, that particular year for this charity show was so greatly affected and so are the other charities. Everyone of us wonder where did all our hard-earned money go to? That incident daunt everybody till then. Our country has been branded as 1 of the top-notch country for funds raising events coz every year there are so many charities going on.

Although many of us know most of the funds really go to the needy but we now, wonder did the whole sum of funds really go the needy or partial sum go to the charity organisation itself?

Now the poor chap has been charged & sued, so are his staffs because they also misused the funds and some sum of money went into their pockets too.

So the answer is simple to know how much what we've donated actually goes to the needy is: It's for me to know & for you to find out!!

Answer 2

Unfortunately, not enough. Most agencies, even the large non-profits use the money to pay for their own overhead and operating costs, before one red cent goes to the cause for which it was intended. On average, I believe, it is somewhere in the neighborhood of 60-70 percent is used for this purpose and only the remaining 30-40 percent or less goes to the "needy".
However, without these organizations and their high visibilty,
and advertising, it is likely that these causes would receive even less. So what can we do??? We could think globally and act locally, by volunteering, we can help reduce these costs, thereby freeing up more funds to go where they are needed... We could adopt local needy people and in conjuction with others help provide relief on a smaller cost free scale, which would also free up funds for other organizations... There are many things we can do. We just need to make sure the organizations we support and assist are keeping their costs down and are not wasteful and greedy. This non-profit financial information is easily accessible and is readily available, in order to maintain their status as a non-profit...

Answer 3

Each charity should tell you what percent actually goes to the charity.

Most charities only have to give 2% of their money to the need. The rest is supposed to go for overhead.

Before you donate, contact the charity and find out what their percent is.

Answer 4

I feel that we should not hesitated to donate just because large percentages of donation don't go to the needy. If everyone think that way, the people who truly are in need of the funds won't even get a cent. Although it is true that they are getting very little amounts out of the total we donate, at least they are still receiving assistance. Therefore, i feel that we should not hesitate to donate money if we intend to.

Answer 5

Thank you for your question...(up to the soapbox).

One of the problems with non-profit organizations is that due to tax legislation...all non-profit organizations MUST pay their officers WHATEVER pay is associated with private business (corporations) positions of the same title..i.e. if a non-profit organization opens in a metropolitan area and the average rate of pay for a Corporate President is $500,000...the non-profit organizations MUST pay their President $500,000. So, if a non-profit opens in a rural area and the rate of pay to a Corporate President is $50,000...the non-profit organization MUST pay the non-profit President $50,000.

What is W R O N G with this equation? Nothing...if you happen to be interested in opening a non-profit organization in a metropolitan area. Most non-profit organizations are similar to franchises...in that they MUST pay the corporate headquarters a percentage of all receipts (donations)...it is usually modest...10 percent or so...varies according to the non-profit organizations corporate protocol.

The amount that actually goes toward the 'good cause' comes AFTER the salaries of all officials and clerical staff has been paid..corporation percentages have been paid..and any addendum costs associated with operations has been paid.

I do not know specifically 'how much of a donation goes toward the people who need it'; however, I do know that I highly disapprove of the existing system .. that also incidentally DOES NOT have any overseeing entity by government or private group.

Thank you, again for your question...for further research into non-profit organization formation...contact the Internal Revenue Service.

Answer 6

With the Salvation Army, it's a very high percentage like 85% or 90%. The Officers in the Army recieve a very small salary

Answer 7

Every place and every one is different.

You check into some of them by researching them on the internet. If they are listed on the Combined Federal Campaign then you will receive a listing showing exactly how much is being paid to outside sources from your money.

On that particular program I used to contribute to the Appalachian Trail Improvement Program (5%), and to the Scripps Institute Marine Biology Program (5%). Both were chosen for my interests and for the fact that they had the lowest percentage going to non-charity purposes. Some were as high as 50%.

Answer 8

From as little as 10%. I used to work in a Social Centre in Singapore and 60% went to the administration costs of the organisation!

Answer 9

Any charity will supply you with their financial information. They will either tell where to find their statement on the web or send you a printed copy upon request. They all differ in how much actually goes to the needy. On the average it's about 50%

Answer 10

You need to look at what the charity supports and what their aims are christian charities seem to give more of the donation and have less over heads to pay out.