Many charities recently came under fire recently as news reporters proved that many popular non-profit organizations were actually taking most of the proceeds that they collected for themselves. In other cases, charities hired for-profit fundraising companies that took most of the proceeds from collections. It’s imperative that people be savvy when they want to make the right decisions towards charities and fundraisers. Intelligent givers don’t just give out of a reaction. They look for genuine opportunities to help.
One of the key things to remember is that your charity has a goal. For instance Scott Reiman donated many of his funds to public projects in Denver. The funds went directly into the building. He also donated to the University of Denver to create a better finance program. When charities have goals, it’s make it easier to donate because there’s an end point in the distance.
You also should eliminate the middleman or telemarketing company. These are for-profit fundraising schemes that will take most of the proceeds that you donate just for their time bothering you on the phone. In addition, you should consider the charity’s decisions unwise if they use such tactics for fundraising.
There’s also a certain status for charities that you should recognize. This is the 501(c)(3) status. If you see a charity standing outside of a building, they could actually be a scam artist, but you won’t know it unless you check their Internal Revenue Code which should be 501(c)(3).
Before investing, you should also look for executive compensations. So frequently today, the top earner of the charity isn’t the cause but the actual founder who may take home millions. Most CEOs make about $150,000 or more from a non-profit organization. However, you should look at the overall performance and see what percentage of funds actually went to the cause.
The focus should always be on giving to different charities. Some will have more success than others, but it makes your gifts more recognizable if you’re able to spread them around a bit more than just one charity. If you concentrate on giving, you’re also giving back to the community in a variety of ways. If you have more than one charity in mind, make sure that you are also looking at the program’s results to see which ones have been successful in their campaigns. You don’t want to support an organization that may be doing more harm than good.