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Giving To Charity Without Being Taken 
 
by Fred Bergendorff June 03, 2005

Where does the money go?

It is fair to say that it takes money to make money and virtually all charities use fund-raising of some kind to get the necessary funds to operate. But a major question is, how much money is being spent to raise those funds? There are many rules of thumb to follow and one is by the Council of Better Business Bureaus which recommends that at least 50% of the total income of a charity should be spent on the programs it uses to benefit the public. When the charity spends significantly less than 50% on the benefits as described in its mission statement it is cause for concern. You don’t want most of the funds you donate to go for administrative and fundraising costs. You can always ask for written materials such as an annual report or budget from the organization so that you can make a reasoned decision about giving. And be mindful of how the charity promotes itself. Does it run a lot of radio and TV ads? Does it mail out expensive fund-raising material? Does it advertise in magazines and newspapers? This all costs a lot of money. Is the budget adequate to cover these costs, yet deliver “ the goods?”

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