How do you become rich?

Question

I've always wondered how people become rich when they start charities. I mean, if the thousands (sometimes millions) of dollars are going towards the charity itself, then how are these people getting rich? does a certain percentage of what people donate go to the charity CEO? i don't understand... someone please give me a mature answer.

Answer 1

Even if you start a charity you can pay yourself a wage. If you're the Ceo of a charity you could pay yourself 300k if you wanted. As long as your pay is the same scale as other ceo's and because of this a large percent of money donated never gets used on what the donated wanted.  

I couldn't find the guide lines for the U.S but " Canada Revenue Agency’s guideline of 80 percent donation efficiency"