How Much Money Actually Goes To The Charities
As yous watch the horrific aftermath of the tornado in Oklahoma play out on television and reach into your wallet to make a donation, practice y'all know where that money is actually going?
The Red Cross oft leads the charge after natural disasters, like the deadly tornado in Moore, Okla., that killed 24, injured more than 200 and wiped out thousands of homes on Monday.
Just every dollar you lot give isn't going directly to the victims you're intending to help. In fact, an average of nine cents of every dollar you donate is going to Red Cross expenses, similar employee salaries and fundraising efforts.
While 9 cents may seem small, it adds upwardly the more you requite -- if you donate $3,000, nearly $300 of that money goes to administrative costs, and that corporeality jumps to a whopping $90,000 for a donation of $1 million.
Related: CNN's Impact your world - How you tin can help
That 9 cents per dollar isn't necessarily going to waste matter, however. Charities like the Red Cantankerous need money to keep their organizations running, pay employees, raise funds and ensure that your money is used properly.
Last yr, an average of five cents of every dollar went to fundraising costs, and four cents went to authoritative expenses. And compared to other charities and nonprofit organizations, that overall nine cents per dollar, or ix%, is very low, according to clemency evaluator CharityWatch.
"These funds ensure proper oversight of donations and provide for the overall administration of our organization," a Red Cross spokeswoman said. "We are proud that we keep these expenses low and that we invest such a large corporeality in our humanitarian services."
To get the biggest bang for the buck, CharityWatch advises, consumers should donate to charities that use at least 75% of donations for straight aid. The Reddish Cross, at 91%, is well above that mark.
Another clemency, Feeding America, generally puts 98% of donations toward feeding the hungry. Only in the wake of disasters like the contempo tornado, 100% is used for feeding victims, thanks to funding it receives from insurer AllState for its disaster relief program.
The Conservancy Army typically spends 82% of donations on assistance. But during disasters, it draws from its budget so it can directly 100% at relief efforts.
Meanwhile, 85% of donations to Earth Vision and 92% of donations to Feed the Children are put toward relief efforts.
Related: Crowdfunding sites raise thousands for Oklahoma victims
Since this data isn't always clearly stated when you're making a donation, it helps to research each charity first.
Charity Navigator is a good place to start, Information technology rates charities and provides information on the percentage of each donation spent on charitable programs versus overhead expenses. CharityWatch provides similar figures, but they are only based on cash donations, which can skew a rating for an organization that mainly receives food donations, like Feeding America, or clothing items, like Goodwill.
While crowdfunding websites allow people to donate directly to individual victims without the overhead costs of large charities and nonprofits, fees tin can eat away at your donation. Three of the most agile sites -- Fundly, GoFundMe and GiveForward -- charge transaction fees of 5%. That means 95% of your donation gets into the hands of victims. Actress credit card processing fees of as much as 3% are often charged as well.
And even though many crowdfunding websites vet entrada organizers to safeguard against scams, fraudsters can exist very clever. Then it'south difficult to be absolutely sure that your money is going where y'all intended.
Source: https://money.cnn.com/2013/05/24/pf/donations-charities/index.html
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