One of the biggest questions that many people ask when donating is ‘how much of my donations actually reaches those in need‘? While donating is essential to support the work being done, most people realize that not every cent donated can go to the cause. Non-profit organizations have costs and these need to be taken care of in order for them to continue to raise money for a cause.
The question is, how much of your funds go where it needs to versus the amount spent running the non-profit? Indeed, it is also worth questioning how much money is kept by those organizing the fundraising, it can be a lucrative deal for everyone involved. So, lets find out how much of my donations actually reaches those in need?
disclosure: this is a partnered post
The Cause Makes A Difference
It may sound surprising but where you choose to donate makes a difference. For example, a donation to support Surf Life Saving Foundation allows them to train lifesavers, purchase essential equipment, and maximize safety on beaches across Australia. Every cent you give to the Surf Life Saving Foundation is used to help save lives.
The reason this is the case is that the majority of lifesavers are volunteers and every cent donated goes to ensuring they have the training and equipment they need. There is no opportunity for funds to be side-tracked.
Donating directly to a cause will always ensure more of your money goes to helping others. In contrast, if you donate through an official fundraising activity, there will be costs associated with the event and these will need to be settled out of any money raised.
In short, as much as one-third of donations could end up with the organizers instead of with the cause that you wish to support.
Where The Funds Go
A charity or non-profit organization doesn’t pay taxes. But, it still needs to prepare accounts. That means it needs to pay accountants to prepare the books and submit them annually. Alongside this, there will be administrators. These are the people that organize the events, work out where the money raised should go, and how to get funds or supplies to the necessary destinations.
Alongside this, the organization will need insurance, people to help with collecting donations, marketing to raise awareness of their cause, and there is likely to be someone in charge. Normally, the person in charge is the one that started the non-profit and they can take a sizeable salary for this position.
The exact ratio of administrative costs will depend on the type of fundraising done and how the non-profit has been set up. There will be costs and it is virtually impossible to have all the funds collected go to those in need. The trick is to balance these costs and maximize the amount going to help others.
Check Them Out First
Before you donate to any cause it’s a good idea to check them out first and find out how much of my donations actually reaches those in need. Doing this means you can target your donations better and ensure you are actually helping others and causes you care about.
