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How Much Goes To The Charity ?
When you are donating money to a charity, it is natural that you want to know the amount that will be used from your donation for the cause. Unfortunately, due to all the administration and back office staff and issues, not all charities can give hundred percent of the donation to a cause. There are expenses that a charity has to bear and these expenses often are borne from the donations that a charitable organization gets periodically. |
When the tsunami occurred in Asia a few years ago, people opened their hearts and donated as much as they could afford for the victims and people who had lost everything. Therefore, it was shocking for the donors to learn later on that on an average about 42 percent of the donations actually got to the people who needed help and assistance.
It is very rare for a charitable organization to use hundred percent of the donated money. Therefore, if you want to know how much money goes to the charity and charitable causes, you can ask a charity to give you their 990 report. This is a report that is mandatory for charities which have budgets higher than $25,000, and this report has to be submitted to the IRS annually.
By studying the 990 report of a charity, it will give you an idea about how much the charity gets and what are its expenses, including miscellaneous expenses. Also, you will be able to get an idea as to how much the charity raises through fundraising. Of course, the charity will not divulge its donors as this information is protected, by the report will give you a fair idea about the way a charity runs and functions. Also, if you see that a charity spending as much money as it receives on different services, or exceeds its services spending beyond the donations it receives, you should wary of such a charity.
The bottom line is that there is no fixed rule as to how much goes to charity. It can be a small percentage of the donations, or in some cases the money going to charity can be as high as 90 percent.
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