Question about donations and organizations?

Question

I've heard that with those donation boxes you see in stores, not all the money goes to the charity. I heard that whoever decides to put it there can take a percentage for travel, expenses in getting the box, etc, etc. Is this true? If so what percentage of the profits is the person allowed to take from the box?

Answer 1

It depends on what charity it is as to how much money is taken out. Those donations, like most others, go to the charity which has overhead costs and employee salaries to pay. 'Good' charities only use 10% for those costs and the other 90% will go directly to whatever it supports (research, supplies for houses, etc). Many other (even mainstream) charites can use up to 40% of this money for their overhead costs and salaries.

Answer 2

All of the money goes to the organization putting out the donation box.

"Overhead" and "administrative" costs are absolutely necessary for a charity -- these organizations have to pay for rent, for utilities, for parking spaces, for furniture, for copy machines, for computers, for the service plans to support their equipment, etc., just like ANY business. They cannot rely entirely on donations for such. ALSO, they must pay for professional services -- for accountants, for managers, for marketing people, for child psychologists (if they serve children), for facilities managers, for program people (to actually deliver the organizations services) etc., just like ANY business. These expenses MUST be paid for, and nonprofits cannot rely entirely on volunteers and donated services to provide all that they need to provide the services they are commited to provide.

So before you balk at making a donation that might go to administrative expenses or overhead, remember that those costs MUST be paid for, otherwise, the nonprofit would not exist and its target audience -- the homeless, children with disabilities, people with HIV/AIDS, etc. -- would go without.

Answer 3

when in doubt, keep your money.