Charity Watch-- How Much of Your Donation goes to Charity?

We are bombarded with requests to help those in need everyday. They need our time, our effort or our blood. Most importantly -like the situation in Haiti - they need our money. But when you give that money - do you really know where it goes? Most of us don't put too much thought into that when we write a check to charity, but these days you should...because some of the money could be going for things far less charitable.

 

 

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Vernon Hill has a very good reason to head up the American Cancer Societies Relay for Life in Carteret County- He is a survivor of prostate cancer. He's lead the Relay for Life for the last three years- they've raised 900-thousand dollars- but a few weeks ago, he suddenly quit.
“I think every volunteer in the united states has been mislead, because they led us to believe that most of the money goes to cancer research” Hill says he found out the American Cancer Society only puts 15% of it's $1,000,000 income to what he thinks is most important -cancer research.

He also has a problem with the amount of charity money executives with that organization are getting paid. “If people want to give money to these charities to pay salaries and administration costs, more power to them, my money comes too hard.” For instance, in 2008 American Cancer Society CEO Dr. John Seffrin earned $685,000 in compensation and another $360,000 in deferred compensations and benefits, that totals more than a million dollars, and that irks Hill- "a none profit president does not need 1 million dollars! Pay him $400,000 like the President of the United States."

Hefty salaries are not limited to the American Cancer Society. A recent Charlotte Observer investigation points out there are 200 non profits across the nation that pay CEO’s more than a million dollars a year. 80 non profits in the Carolinas alone- pay top executives more than $500,000 a year. But are hefty salaries worth it? To find that out, we consulted charity watch dog groups like the American Institutes of Philanthropy and www.guidestar.org as well as the Better Business Bureau. When you consider the billion dollars the American Cancer Society brings in each year, only 7% actually goes to salaries. The watch dog groups and the charities say it’s really all about results.

Charities have to file a form 990 with the IRS each year. They are easy to get but difficult to read. To get a good rating from a group -like www.guidestar.org the IRS the and BBB a charity should not spend more than 35% of what it makes on salaries, administration and the cost of raising money. The American Cancer Society meets that criterion

But for people like Kristi McKinney, giving is more basic. In 2006 her 15 year old son Michael came down with Leukemia and died in October of 2007 “He was our oldest- he touched a lot of people” She says through her tears, and you probably donates like she does. Your emotions tell you it’s simply the right thing to do. “Is a million dollars a lot of money?” She asked then answered her own question, “It is to me. But I also know they helped me."
Even watch dog groups like the American Institute of Philanthropy admits executives may earn those high salaries by running a tight, well defined business plan and spending most of the money on providing charity. www.guidestar.org says the American Cancer Society does that.

Chris Green Vice President of Communications with the American Cancer Society says, if you plan to donate, look at a charity like you would invest in a business, “Look for where the money goes but also begin to look at how effective the organization is with the money they raise, that are they accomplishing the goals they set out to accomplish." Also look at what the Better Business Bureau says about the charity and finally, .ask this one question:” does giving that dollar to this charity make me good about myself and make me feel it's worth it.”