When you donate money to an organization that does good things for society, do you ever wonder?

Question

How much of that money goes to the executives of the organizations? Are you mostly paying for their BMW, their Mansion, their childrens private schools?

I pretty much quit donating, I don't appreciate just handing these people wealth.

Answer 1

I know exactly what you mean! I watched a special on CNN a few years ago where they exposed some pretty well known orginisations, it was sickening! Now if I donate money, I send it directly to the source (I have many connections in African countries) or I give material items, like clothing or food to the Salvation army.

Answer 2

organization nowadays hire another company to "raise" fund for them. these "fund raising" companies usually take out 60% of the donation as their cost. it is very sad indeed.

Answer 3

Most non-profit organizations will post how much goes to overhead costs.  Otherwise you might have to read their annual reports to get the secret.  

Check out http://charitynavigator.org and enter the name of your charity into the search bar.  You can then view how much of the donations go to the program, the administrative, the marketing, etc.  Not to mention, the salaries of their head personnel.

At the bottom of the page, is a list of charities that perform similar work and their ratings, which may allow you to select a charity you didn't know about that does a better job administering their program.  

The only thing they don't mention is how much the staff donates back to the organization from their pay.  That could be interesting.  I think comparing their salary to a similar position in a for-profit organization could also be interesting. If they're making $200,000 and a private position would pay $500,000 that is a significant discrepancy and shows the President cares about the program enough to forgo a private job that pays a lot more.  Food for thought. :)

Answer 4

No, I don't wonder about that, because I donate only to organizations for whom that information is readily available.  My main charity is the Salvation Army.

Answer 5

You need not wonder when giving to The Salvation Army. It is run by "officer/pastors" who are paid about minimum wage plus housing and car allowance.

The most astounding fact is: approximately 90-cents of every dollar goes directly to help people. Very little is used for fund raising. I should know. I was a fundraiser for them for five years.

Go here: http://www.salvationarmyusa.org

Answer 6

I have worked for non-profits all my life, and trust me, if the executives have mansions or luxury cars, it's because they were wealthy BEFORE they joined this non-profit.  No one gets rich working at a charity - yes, they get paid a reasonable salary, but it's not the serious wealth they could earn in the same position at a regular company.

www.charitynavigator.org lists hundreds of American charities, and details exactly how much of every dollar goes to programs, to marketing, and to administrative costs (usually about 10%).  

Yes, there are a few corrupt charity executives out there, but they are the exception, not the rule.  With a little due diligence, you can donate with confidence and continue to help those in need.