Thursday, May 10, 2012

As one person I cannot change the world, but I can change the world of one person - Paul Spear


The past weekend the Dirty Girl Mud Run 5K was held at Montage.  The event was listed with a tag under Benefits: “A portion of all proceeds goes to support breast cancer research, awareness & education.” The participants are in an uproar over the amount of money given to support Breast Cancer.  Many argued they were convinced a larger portion was to benefit Breast Cancer since the pink ribbon displays on the website.  What is the story?

The amount given to support breast cancer by the run is 2.5%.  To some that seemed too little to others any money raised to support breast cancer is better than nothing.  For those that questioned the amount given directly to the charitable organization I have some advice from my own research that I have conducted over the years.  Read the fine print, research the organization and ask questions.

I have been giving money, my time and “soft goods” to charities since I was six.  Yes, it is true my mother made me at that age but I have since taken up the gauntlet.  When I first started giving money, I gave to whoever asked.  If Easter Seals sent me an envelope, I would send them a check.  Jerry Lewis telethon airing on Labor Day, I answered his plea for money.  I did not know where the money went or what amount, if any, reached the intended charity.  I was an uninformed benefactor. 

Now I conduct research.  I limit my donation to those charitable organizations whose percent of donations earmarked for administration is less than 25%.  I reference two websites for research on charities.  I like charitynavigator.org and charitywatch.org.  There are other websites like guidestar.org and give.org.  You can look at all four and decide which you prefer.  In Charitywatch.org’s view, “$35 or less to raise $100 is reasonable for most charities”.  My criterion is stricter than the charity evaluators I utilize:  25% versus 35% for administrative costs.  Some charities associated with churches have below 10% of their donations going to administrative costs.  For charities that provide support to third world countries the amount of benefit, that money can provide to recipients is much higher than in the US.   

I decide by searching my heart.  What charities are important to me?  What cause(s) have affected me in such a manner that I am compelled to donate? I investigate these charities.  Is the charity a 501c Tax Deductible NonProfit?  What type of contribution helps the most?  What amount of the charity’s budget goes directly to programs versus administration of the charity?  When I am unable to obtain the information directly, I sometimes have to reach out for the information.  I use the charity’s budget (501c organization’s budgets are public knowledge) and look at money used for programs and compare that to administration expenses for the charity.  I think the best resource for budgets is nccs.urban.org, you can view the actual tax forms.  You can also visit the Better Business Bureau’s website Wise Giving Alliance (bbb.org/us/charity/) for information regarding budgets.  

What happens when I cannot find my charity listed in any of the usual searches?  I call and ask them.  I usually have to leave my name, telephone number, explain why I am asking for their percent of budget used towards programs and if they are a 501c NonProfit.  The charity is required to provide accurate information.  Once in awhile a charity does not return my call (this has happened).  I am usually saddened when I am unable to donate due to lack of information. 

There are situations that I just give without checking first.  I usually regret it.  I believe a donation where the majority goes for direct services makes more of an impact in aiding the life of a recipient. This is what charity is all about.  I hope that this information will aid you in eliminating any surprises when making future donations. 

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