America's Worst Charities...and How to Avoid Them

Recently the Tampa Bay Tribune published an amazing investigation uncovering America's 50 worst charities. Together, these orgs raised $1.3 billion ...spending $1 billion of it on fundraising overhead expenses. Places like Kids Wish Network distributes just three cents of every dollar it raises on sick kids. Instead, 97% of its funds are spent on staff, fundraising tactics, other overhead expenses, and what looks like a very sweet payday for the founder.
Many have written about the worst charity list and the breakdown of egregious expenses.
People behaving badly in the name of needy children, cancer, and other worthy causes is digusting. (Look closely at the list, most of these orgs fall into those two cause categories.) Some legislators and regulators have taken action to halt these efforts. But lets assume that the IRS and government are not perfect entities. (Dramatic pause.) What can average citizens do to protect ourselves and others from being duped by these entities?
Before you make a contribution anywhere....
1. Check CharityNavigator.org. This independent entity reviews the IRS filings of orgs, their policies on transparency, etc. Charities are given rating up to 4 stars. The page layout is clean and simple. And, if you want more detailed information, all the supporting documents are posted there too.
2. Pull their form 990. Every charity registered in the USA has to file this with the IRS by May 15th (unless they ask for an extension and then the deadline is August 15th). If you ask for this form, a charity has to share it with you. (You can also pull form 990s yourself by searching www.GuideStar.org but because GuideStar pulls directly from the IRS, the information there can be a year behind.) Pay special attention to (a) where funds come from (b) the salary section — anything fishy here? (c) distribution of expenses — is everything going to lawyers and fundraising agencies? Reading a form 990 isn't easy. So, not-for-profit legal legend Peter Swords wrote a brilliant piece dissecting the Form 990. https://www.npccny.org/Form_990/990.htm (It isn't beach reading.)
3. Call them...but don't ask for the top dog. Instead, speak to someone else on the team. Ask a few questions about the latest challenges the org is facing, how that person spends his/her time, etc. This isn't a fool proof method of examination...but if the financials are making you suspicious, it might be worth having some human contact.
4. Call a rival. If you are interested in supporting a cancer or children's org, you have more options than a Vegas buffet. And, if you'd take five minutes to peruse the seafood section before diving into the pasta bar, then maybe its worth spending at least 5 minutes comparison shopping before contributing to a charitable org.
5. Think beyond $. Sometimes massive overhead can be justified. I wrote a piece for Fast Company a few years ago explaining why overhead isn't always the best marker of impact. It's worth asking an org is you can visit or help in a non-monetary way.
6. Other suggestions? Please leave them in the comments below...
Thomas Sigmund Warda

Conscious Capitalistic ENVIRONMENTAL ENGINEER - Purveyor of Life and Planet Saving Technologies

8 年

thanks for your insights!

回复
Rebecca Dalmas

consultant at Techno Tutor

10 年

It is cool to see someone pointing out how our wealth flows because as soon as we look at all consequences, the closer we get to realizing our starting point needs to be addressed.

回复
Todd Wheeler

Regional Safety Manager

10 年

Great article and very likely this list can be expanded to well over 100+. I would agree CharityNavigator.org is a great resource prior to making your donation and should coincide with the 990. At the same time, I would like to see the flip side of this with the top 100, % to dollar contribution. Maybe cynical here, but I suspect some of the better known, high dollar charities don't make that list either.

回复
Robert Wrynn CADC II

Now at Palm Desert Recovery

11 年

Good job , the Tribune has done it again ! Act locally !

回复
Aaron Thom, MBA

President at California Business Advisors

11 年

Assuming most people here watch/listen to the Ted talks, here is an interesting one on charities, giving, and overhead. https://www.ted.com/talks/dan_pallotta_the_way_we_think_about_charity_is_dead_wrong.html

回复

要查看或添加评论,请登录

Nancy Lublin的更多文章

  • The Truth About Thanksgiving & Sleep

    The Truth About Thanksgiving & Sleep

    Every year, our family engages in a hot Thanksgiving debate…about sleep. We gather 'round, sharing laughter, love…

    1 条评论
  • I don't want your money today.

    I don't want your money today.

    Thanksgiving. Christmas.

    4 条评论
  • 100 Things We've Learned from 100,000,000 Messages

    100 Things We've Learned from 100,000,000 Messages

    One hundred million messages is a LOT. It represents five and half years of hard work, a lot of lines of code, and a…

    18 条评论
  • 100,000,000

    100,000,000

    That’s eight zeros. Some time on Monday or Tuesday, that’s how many messages of pain and love have been exchanged via…

    23 条评论
  • Fact: 100% Of People Have Mental Health

    Fact: 100% Of People Have Mental Health

    Fact: 100% of people have mental health. Kind of like dental health--we all have teeth that we should brush and keep…

    20 条评论
  • My 3 Enemies

    My 3 Enemies

    I love a good Marvel movie. The humor, the special effects, the characters--and the clear good vs evil.

    23 条评论
  • A Family Review of MacGyver

    A Family Review of MacGyver

    About a year and a half ago, we were on vacation..

    35 条评论
  • Put the GIVING in Thanksgiving

    Put the GIVING in Thanksgiving

    Many families start the meal by going around the table, each person declaring something he or she is thankful for--good…

    27 条评论
  • 2 BIG Reasons I Forgot a Chapter in My New Book

    2 BIG Reasons I Forgot a Chapter in My New Book

    About a year ago, a publisher approached me asking if I was interested in writing a book about our organizational…

    17 条评论
  • 5 Tips for Taking Business in Japan

    5 Tips for Taking Business in Japan

    Recently, All Nippon Airways (ANA) offered me the chance to meet a business connection from LinkedIN in any major Asian…

    36 条评论

社区洞察

其他会员也浏览了