The Percentage of Donated Money Charities give to the Poor

[Kofi]

Until recently, the only international Charity Organizations I knew of were UNICEF, World Food Project, UNAIDS and a few others. However, these days I see so many charity organizations online. UNICEF used to be very active in Africa in those days. UNICEF has done great for some poor children in Africa and around the world. In my country for example, UNICEF helped a lot in educating the youths about HIV/AIDS. UNICEF is the only international charity organization most Africans know of.

Today After reading Doug's comment I decided to google the percentage of money some of these charity organizations give to the poor and the percentage they use to pay their workers including CEOs. I googled and read several articles about this topic and I've learned a lot today. In one of the articles I learned that President Obama's salary is 400,000 dollars a year in addition to some benefits which I think is great. In another article I read that the CEO of UNICEF makes around 2million dollars a year. I was shocked to read a CEO of a Non-profit Organization makes 2 million dollars while the president of the richest country on earth makes just 400,000 dollars a year. I thought this figure was wrong so I googled some more articles and some confirmed 2million dollars while others gave figures close to this number.

In another article I read that Cancer is the number one Killer in America today and that about 565,000 Americans die from cancer every single year and because of this most Americans donate to cancer charity organizations such as the American Cancer Society which helps in cancer research and treatments. But just at the bottom of the article I read that the CEO of American Cancer Society makes about 1.3million dollars every single year. In fact the CEO made 1.3 million last year. Meanwhile the CEOs of charity organizations such as the Salvation Army make around 130,000 dollars every year which is nothing compared to 1.3 and 2 Million dollars.

If a charity organization makes 100,000 a year and pays the CEO 50,000 and other members 40,000 then it remains only 10,000 for the poor. And even the 10,000 I am not sure the poor will get all the 10,000 because transportation and other expenses cut in too. So at the end of the day, the poor gets almost nothing out of your donations which is very sad.

After the Haiti earthquake I saw so many charity organizations with "Donate here" buttons all over the internet and i thought these donations would greatly help rebuild Haiti for the better but I was wrong. The Question now is, what percentage of the donated money actually reaches the poor in the society? and concerning the salaries of the CEOs of some of these charity organizations, are these figures too much?

[Doug]

Are the figures too much? How much is too much? All things can be justified by a good justifier. All law can be twisted by a good lawyer. All truth can be twisted by a good preacher and so it goes.

If I were to ask this question I would rephrase it. I would ask:
Are the figures evil for what they represent? If God wants us to give to the poor why do we let the preachers twist this truth into saying give to an organization that will give a small percentage to the poor. Why not just give it to a poor person to help him out? I know why you prefer giving to an organization or church! Do you? WHY?: which leads me up the question I now lay in front of you.

WHY?????????

[Kofi]

“All things can be justified by a good justifier. All law can be twisted by a good lawyer. All truth can be twisted by a good preacher and so it goes.” That is very true.
I remember one Sunday afternoon we had nothing to do so we were sitting under one mango tree in our compound and a Jehovah witness came to share the word of God with us. These days there are so many Jehovah witnesses in Africa. My granfather was sitting quietly in his wooden chair as if he was not listening to the discussion I was having with the Jehovah witness. We were talking about tithe and the importance of paying your tithe. Towards the end of the discussion my grandfather cleared his throat and said “there is more blessing in paying your tithe to the poor on the street who has nothing at all to eat than putting the tithe in the Church’s collection bowl” and he was right.
These days Church is a business in Africa and most pastors in Africa have mansions and big cars while some of the members go hungry every single day with nothing at all to eat. Most of these pastors do no other job than preaching the word of God which means the money we put in the collection bowl is the same money building those beautiful mansions and buying those expensive cars for the Pastors whereas the poor goes hungry with nothing at all to eat.

So if you can then it is better to give to the poor directly rather than giving to some charity organizations. In Africa, beggars and disabled people mostly sit by the streets and beg for alms especially on Sundays. If I have change in my pocket I try to give some to the poor by the streets and anytime I give the change to the poor on the street I feel good inside me because I believe I have done something good although very little. I don’t think there is any blessing in donating thousands of dollars to charity organizations if your money doesn’t reach the poor.

[Doug]

My question was why do people prefer to give to an organization rather than directly to the one in need?

By the way Kofi I agree with you one hundred percent on your statements.

[Kofi]

"My question was why do people prefer to give to an organization rather than directly to the one in need?"

Because that is what they tell us to do. The Bible says we must give to the poor but in today's society we are been told to give to charity and the sad thing is that some of us believe that giving to charity is the same as giving to the poor which isn't the case because in most cases the poor gets almost nothing out of our donations which is very sad.

[Marco]

"My question was why do people prefer to give to an organization rather than directly to the one in need?"

This is my situation and that of some other people around the world. I live in Italy, I have a lucky life with a good health and a quite good wealth but I don't know anyone whose trust, wich give him money for poor people. So the only way is to consign aid to the existing organizations.
After the birth of my two sons I am very sensitive to issues concerning children and If I had had the opportunity to give a direct and safe aid I would have done it, be sure!
This is a big problem because is very difficult to understand wich are the earnest organizations and wich are the only lucrative ones!
What is the solutions? Sorry...I don't know! There is a sense of helplessness from my side.


Marco

I never thought about this. If it is true then this is very bad. my father is a college physics professor and works so hard everyday teaching, giving assignments, grading, submitting scores, and a whole bunch of other stuffs yet he doesn't make even $100,000 a year. Just a CEO of a charity organization and making 2 million dollars? that sounds so.....

Is someone able to tell me in wich way I can give money directly to peaple in need?
I wouldn't give my money to the first "Marco" that ask me to help him! Risks are too hight!

[SeekerOfKnowledge]

This is such an important and sensitive issue. Unfotunately, some of the things i've found out from doing my own independent research are very true and quite shocking. I dont think giving to charities is a good idea! I could never even imagine trying to convince myself that i've done something good by donating to these big lucrative businesses because in al honesty, that is all they are. How sick can people be to use another humans suffering and despair to make big profits!

Fair enough that everyone needs to get paid, but comee onn, like honestly 2 million dollars a year?! Thats gotta be a joke! Just makes you wander if theres hope for mankind.

I would honestly say that the only way to give money to poor people directly is if you know people travelling to poorer countires like family, friends or relatives. We send money with trutworthy people going to a poor country so that way we know our money is getting to those in need rather than some rich fat guy in a suit. I especially understand how hard it is for people that aren't from poorer countries to directly give. This creates a huge problem and the only solution I can think of although it may seem hard to do is; save your money and travel yourself to a poor country and give to those in need. Some people reading this may be laughing but in all honesty, If I don't do this, then I porbably would never trust or give to charities. I would be assured that my money is going to those poor people and not some private business. This is what I would do, what do you people think or have to say? And I know it may seem hard but honestly just imagine the feeling of seeing that for yourself, seeing a desperate mum with 3 children and a baby on the side of a street and being able to feed or clothe them...... I dont know but this is something I want to achieve in my life

i agree that not all money are given to improverished nations, but it must be noted that not all of us have access to these areas. In this globalised and competitve world, we are hardly in contact with the poor, so how then can we still donate to them directly? but perhaps we can donate to a bona fide, reputable organisation?

I agree with you all, that it is discouraging to see non-profit and charitable organizations with a large overhead (ie: million+ dollar salaries for CEOs).

I also understand the logic in wanting to give money directly to poor, needy people on the street.

However, there are a few things that are important to remember in regards to development/helping the poor and needy/ending poverty:

1. Giving money to a poor person on the street will only help them get by for that day. Done like this, it's not a sustainable solution for that person living on the street -- What happens the next day? What if there is no one with a heart as big as yours to give them more to get by, again? While it is sensible to give directly to someone in need, I think the bigger (and more important) question is "What is the right way to give to someone in need, to help them help themselves, so that they will be able to prosper on their own after my help is gone?"

2. Not all charitable / non-profit organizations are corrupt, with huge overhead spending. Especially small, grassroots organizations that are working on the ground in the communities they benefit, right alongside established leaders and authorities in those communities to create real change and show their donors exactly where dollars are going.

It's so important to know where your money is being spent - this comes from the transparency of the organization. A good, credible, results-oriented organization will tell and show you (via financial documents, videos, website, program updates, annual report, accessibility to staff) the specific results they are able to achieve with your support.

Also, there are other important factors besides, "What percentage of donated money actually goes to programs", and those are:

--- "How successful are you as an organization?"

--- "What are your results?"

--- And, sustainability is not just a factor that needs to be addressed with beneficiaries, but it must also be addressed with the organization itself. So, it's equally important to ask: "How are you ensuring that your organization can sustain itself, so that your programs will last long enough to make a real and lasting difference on the ground?"

This is important because, let's say an organization has plans to help a community build a school. Let's also say that organization has taken careful steps to keep overhead spending low (ie: money spent on staff who manage donor relations and resources that give transparency / share results with its donor base) so 95 percent of the money donated makes it to the school building project. What happens when, that organization has not invested enough in its operations to keep money coming in to build the school? What happens when they spend that 95 percent on the school building project, and there isn't enough funds coming in to finish it? Who benefits when a school building project must be cancelled because they ran out of money or resources?

My point here is, do not give up on the credibility of charitable organizations just because there are a few who have disappointed you. Appreciate the fact that you now know which organizations you will NOT support.

Continue to do research on who you are giving your money to, where the funds are being used, and most importantly - what results are achieved. Look for an organization that is efficient, working alongside communities empowering them to create their own solutions. Look for an organization that has sustainability in mind - An organization whose programs and systems will continue to work for the people long after its gone. Look for an organization that is giving others a hand UP not a hand out.

Because, at the end of the day, if these organizations with CEOs that earn a million dollars are transforming entire communities by lifting them up and out of the cycle of poverty entirely - to a point that the community is thriving on its own after the organization's assistance is gone, way better than any government program or individual giving money on the street, then I daresay they might have earned their paycheck.

(Although I'm still uncomfortable with a million dollar salary in the non-profit sector) The most important thing to ask is:

How far will my dollar go to help someone in need - Today, Tomorrow, and for years to come.


And if you care, here's one of my favorite, small, grass-roots organizations that are producing real results in West Africa: www.justlikemychild.org

In addition, here are some videos that might be helpful for those of you who are interested in helping the poor, but are not sure how to do it or which organizations to support:
www.youcanendpoverty.com

I have never donated money before. guess I'm an agent of the devil.

there are other forms of donation too not just money. for example you can donate your old clothes. you can donate your old car and other stuff too. just 3 months ago I donated my old jacket to help keep some prisoners warm.

all of them na 419 squad. abeg make una no give any money to those scammers. they think say na only naija people dey do 419 but all these people and NGOs na 419 to the next level.

I always use a site called charity navigator to enable me compare charity organizations. this site also shows you how the charity organizations spend the monies they receive from donations.

I always donate clothes and stuff instead of money