Sunday, 28 May 2017

Do Charities Manage their Donations Well?

 



We  moved to a new home almost a year ago.  It had been previously occupied by an elderly woman, now deceased about a year and a half.   She must have been generous because a steady stream of charities are still writing to her asking for donations, including local and federal political parties.   They are all mainstream charities whose names I am familiar with and perhaps the lady felt this would ensure her donations were well spent.   I notice that the charities spend a lot on postage yet must have no way of knowing if the donor has moved away or died.   Many solicitations seem to include date books, calendars or other goodies perhaps attempting to create a feeling of required reciprocity.

I've wondered about charities that I've supported myself over the years. When I research charities in general I  usually haven't been pleased with the information that's come my way.   Large, well known charities are often top heavy with administrators and Chief Executive Officers and similar positions are generously renumerated.   Large offices in high rent areas appear to be necessary.    A Moneysense article provides some details about the efficiency of large charities in Canada. Charity Navigator calls itself a guide to intelligent giving but some organizations have disputed their figures, for example, here.
  


One way to uncover more information is to volunteer at organizations that provide services you value.   Unfortunately,  as is often the case where you are employed, you may be disappointed to find that waste is endemic.   I have heard that from those employed in both medical and educational institutions.    People may be well-intentioned but they make poor choices.   This article in the National Post details how only 45% of funds raised for cancer go to fight cancer.  Having a good heart doesn't necessarily make a person financially savvy.  Small charities may yield to spending money developing logos, attending conferences or paying too much for office space.    In developing countries corruption can be rampant.   The justification may be given that some people are unfairly rich and resources (also known as other peoples' money) need to be redistributed.

When I was involved with a school parent group I found out that in middle class/well to do areas parents were allowed to fund raise for computer labs while in poorer areas where fund raising was minimal the school district would provide the computer labs.   Seems like another form of taxation.

What is the solution?






No comments:

Post a Comment