By Dennis Powell, e-Management
e-Management supports A Wider Circle, a charity focused on eliminating poverty. What are your favorite causes or charities? #mypriority #AWiderCircle
Charitable giving which includes financial support, in-kind donations, and volunteering can be one of the most fulfilling things anyone can do. Yet, there are actually some charities that take advantage of the public’s generosity. How are a few nonprofits getting over on donors? Well, CNN reported that the “nation’s 50 worst charities” wastefully paid fundraising companies almost $1 billion during a 10-year span. Even more concerning, these same 50 charities gave “less than 4% of donations raised to direct cash aid.” In other words, if I give $100 to my favorite cause, only four dollars go to programs that support real action.
So, how can consumers find charities that focus on maximizing donations for people and causes rather than consultants and executives? e-Management has gathered a few tips that may help anyone who is thinking about giving to charities…
- Confirm that the charity is real. The Charity Navigator—a nonprofit with the mission to help empower people to give intelligently—recommends donors confirm the 501(c) (3) status of charities prior to committing any dollar to a cause. In the United States, 501(c) (3) organizations are tax-exempt nonprofits that meet special requirements under Section 501(c) of the United States Internal Revenue Code (26 U.S.C. § 501(c)). Donations to these organizations are tax-deductible. According to the Charities Review Council, consumers may also be able to deduct expenses incurred while volunteering at these nonprofits as well as get a deduction on some of the cost of attending a charity event sponsored by 501(c) (3) organizations.
- Request an annual report. Not all 501(c) (3) organizations are run efficiently to maximize dollars that support their causes. CNN exposed a Florida based charity that raises millions of dollars every year, yet it spent “less than 3 cents on the dollar helping kids.” In contrast, e-Management works with , a 501(c) (3) with only 2% overhead (operational expenses) and the charity is committed to using fundraising dollars to directly “serve those in poverty.” Clearly, A Wider Circle is putting its donations toward advancing its mission! Donors can get financial information about charities by requesting an annual report or a statement of activities. An annual report gives donors insight into how a nonprofit uses its resources and oftentimes showcases the successes of their programs. Some annual reports will even explicitly list top donors, which may offer additional peace of mind for donors.
- Build a relationship with your charity. Charities are living organizations that may experience highs and lows. Many nonprofits rely heavily on private donations. Once a charity has been qualified as a 501(c) (3) that provides services to advance its mission, consumers may want to consider setting up automatic and periodic donations (e.g., monthly, annual) to their trusted charity. Donors may even consider volunteering a few hours every week or month. Another option for donors is to find out how they can become social media advocates to help their cause secure additional supporters, volunteers, and donors. Supporters of charities may also want to attend annual fundraising events and invite their family and friends to buy tickets. Seasoned leaders, managers, directors, or executives may want to consider joining planning committees or boards of advisors/directors of their favorite charities to ensure of the organizations’ long-term success.
- Learn about new charity scams. It seems as if every day there is a new online or telemarketing charity scam that targets people who want to make the world a better place. The good news is that the Federal Trade Commission (FTC), the consumer protection agency, makes identifying such scams easy. Donors can visit the FTC website, which gives consumers a Charity Checklist to help them avoid costly scams. Click for more information. It’s that simple!
What charities or causes are right for you?
Forbes magazine ranks the in the countries based on private support and other criteria. The on the list are United Way, Salvation Army, and Feeding America. (1) Did your favorite charity make it on the Forbes list? (2) What are your favorite causes? (3) What do you look for in an organization when you donate?
Tags: #mypriority, A Wider Circle, cause, charity, CNN, Dennis Powell, , , Forbes, fundraising, nonprofit, Ola Sage, Salvation Army, United Way
Fantastic article Dennis! I am a STRONG supporter of giving to charitable organizations. WE all have had a helping hand at many of our successes in life and sometimes we are blessed with favor through a charity without even knowing. I tend to give to organizations/causes that I believe are in line with my political and/or religious beliefs, but I give with the expectation that someone will be BLESSED by my contribution. YOU are absolutely spot on when you say that you should do your research and ensure that the majority of contributions really reach the intended recipient/groups of individuals and knowing that there is a site that you can check out is certainly an added benefit. Let your conscious be your guide and give as if you were giving to yourself or a family member. In the end, we all need to help each other get that leg up and sometimes charities are a good way to help people without knowing specific individuals but you are donating to a cause/concern/issue or world problem/event. Thanks for the information.
Thank you for this article. I do believe giving is necessary and a great way to give back and help others who are in need. With scams everywhere in life it is nice to be able to navigate charitable giving a little easier w/o the worry of your money going to people who either steal or mismanage the funds you give. These are great steps to putting at ease the fear of giving.
@Dennis,
I too use Charity Navigator in deciding where my charitable dollars go. When I contribute to faith-based organizations, I also like to know if they are ECFA accredited (ECFA.org). Great posting, thanks!
Thank you for this article. Having a family member with Down Syndrome and a family member with Autism I have seen first hand on these different charities and causes actually do help families, through research, Program funding, and special schooling for persons with disabilities. These charities and causes whether it’s walks, runs, and or speaking engagements really help families learn how to communicate and interact with persons with disabilities. Yes I do support charities and causes that encourage and support the well being of another human being.
@Colleen, You are welcome. Thank you for the ECFA.org tip. Great addition to this discussion.
@Leon Crowe, thanks for sharing your causes/charities. Years ago I worked with a company founded by people with disabilities. It was one of the most rewarding and enlightening jobs I have had. Nearly 13% of people in the USA have some sort of disability. Great cause.
@Brian Hamlett, Another great resource to protect yourself from scams: FBI Tips on Avoiding Charity Fraud thank you for stopping by and adding your voice to the conversation.
@Tyrone Spencer, interesting that you and Colleen mentioned faith-based giving because online donations to such organizations have seen the greatest increases in recent years according to the The Charitable Giving Report. Thank you for sharing your comment.
It’s always great to learn how other countries & in this case The States manage charitable organisations. It is concerning to realise that the well known major charities syphon off a maximum of the aid to advertisement, promotions & officers salaries. What a good idea the Charity Navigator is. In the UK we can similarly check a Charity’s status but it does not drter bogud & fraudulent charities from targeting the public. I enjoy donating funds to charity. My children this year decided that they didn’t want birthday parties but instead wished to sponsor a child. So we are able to do so with a registered charity, Penny Appeal, Amir Khan (Boxer). Amir is a local lad & his brand recognition endorsed the charity. You may have heard of Kidscape UK being forced to be closed down immediately when it was revealed in the media that the CEO was pally with PM Cameron & was able to access huge funding as & when she needed. This is exploitation because it affected other needy charities, Kidscape was highly respected but is right to be discredited. I see giving to charity not only on the grounds of religion & blessings for another but my human responsibility. I will especially look to support local charities with my time & money. The children & I volunteer our time to our local church food bank & this weekend we will be joining a Manchester based charity to help feed the homeless in our city centre. There are many ways to give & I appreciated your article in this respect Dennis Powell, thank you.
@Fauzia B Karim, it is sad when a great organization loses the confidence of donors and supporters due to the actions of certain officers/executives or staff. Hopefully, there is an organization that can fill the void of Kidscape UK. Also, thank you for sharing your charity/cause. Great additions to this Charity Blog posting.
Great blog Dennis! I just want to add how much fun it is volunteering at A Wider Circle, especially on e-Management’s Employee Volunteer Days. At first it was hard to imagine that a few hours spent volunteering goes a long way in helping A Wider Circle’s mission to end poverty for one individual and one family after another. There is so much work to do and so much help is needed. The staff at A Wider Circle are always so cheerful and positive which makes you want to be there. As one of our volunteers once said on their first volunteer assignment at A Wider Circle ‘I see now how the dots are connected, and how meaningful the volunteer work we do is’. Our time is precious, but when you have some to spare, try out volunteering with A Wider Circle, I think you’ll want to return.
@Dagmar, My favorite causes are human right, early care and education, youth development, and charities that support eradication of illiteracy and poverty. So, A Wider Circle is definitely a cause in my opinion. I have personally given to the organization, brought friends to its annual conference to End Poverty, and promoted their Neighbor-to-Neighbor program to family, friends, and former colleagues. I invite everyone to support this award-winning and highly respect nonprofit. Thanks for sharing your thoughts and the compliment.
Great Topic!
I’m was an avid supporter of a few places for years however I became a bit leery after learning of the breakdown in some cases. Charities should always be forthcoming with their data – any that can’t produce it immediately I will not support. Charity Navigator has given me new hope and support in staying a donor. When all seemed too questionable I rely heavily on other like minded individuals and we create our own opportunities to GIVE. Its work but its the most rewarding feeling to know you did something great and see your hard work creating smiles. There are now so many ways to get and give help – I get gofundme opportunities regularly but even in that you have to do your homework to make sure its a worthy and trustworthy cause.
Again GREAT TOPIC!
@Melissa Quick, Where do I begin? You’ve covered a lot. First, I applaud you and your friends/family in finding innovative to give back to communities. Second, I agree that using gofundme (and other) online fundraising tools can be risky…I’ve uncovered a couple of spams myself. Third, I also agree that doing your “homework” before giving is good idea (as outlined in my posting). Thank you for stopping by and sharing your comment/thoughts. (And thanks for the compliment).
I am a firm believer in giving back and it’s a special place for scam artist that con people out of their money. Now one of the perks of being a federal employee is the Combined Federal Campaign (CFC) you can give to charitable organizations and they are payroll deducted and more importantly they have to be reviewed and approved by a board in order to be in featured. Outside of that I try to give to known organizations or through my church. Just like if you are buying a car, a house or even that nice shirt that you like do your research and check up on these organizations and know where the money is going. Get a receipt, I do claim any donations on my taxes. Give cheerful but give smart.
Very informative article Dennis. We donate to charities like Goodwill, Salvation Army, Autism Speaks, Planned Parenthood and Humane Society at random times throughout the year. For example, if we are at SAMs Club, we will pick up a 50 pound bag of dog food and leave it at the animal shelter. when we are doing the seasonal clothing rotation, any clothes that the boys have outgrown, we donate them to Goodwill.
@Cecelia Reid, Kudos for recycling your family clothing. So many people throw away their old clothing. As you probably know, recycling clothing cuts down on air pollutants and greenhouse gas emissions. Thank you stopping by and sharing how you and your family give back to your community.
It seems to come down to having faith in the organization to which you are giving, that they will do the honorable thing. Greed of some organizations along with being burned in the past seriously tempers one’s propensity to give for what one considers to be a benevolent cause. This includes some churches too.
Sometimes the effort used to investigate an organization for levels of corruption tends to discourage a giver. Who is to say that an honorable organization now will remain honorable in the years to come? This list provided is a good start and I suppose that in an imperfect world, it is way better than having nothing at all.
Trimming the “fat” off of budgets to provide better shareholder value was a significant move in the private sector during the mid to late 90’s. When the scandals (% usage of funding from donations used for programming versus overhead, etc) reached the United Way, I noticed a rapid shift as a board member of the United Way and several of its agencies in Indiana. Yet, we MUST consistently advocate for wages and/or resources to bring the best talent to organizations (501c3/NFP) that endeavor to do so much good. Another consequence of those scandals is the “direct assignment of corporate sponsorship and individual donation dollars) to a specific program(s) and its operational expenses NOT INCLUDING program manager salaries, etc. Yet, overall, the assessment of how funding takes place has been an overall healty event over the past 15 years.
My 501c3/NFP of choice are typically those that impact you and the core traits of character. The Center for Leadership Development http://www.cldinc.org is a 37 (or is it 40) year old organization that not only benefited me as a teen but also my children. I am a former board member and program facilitator. Organizations that have meaningful impact, measure program effectiveness and success (yes, all, that was INDEED a plug for evaluation services..lol not really), and have strong, active boards and talented staff.
@Keith Yearwood, great points. Whenever a nonprofit I support changes leadership, I immediately start to research that persons Internet presence using news search and checking out that person’s LinkedIn page. Thank you for stopping by and sharing your thoughts.
@Kevin Henderson, the Combined Federal Campaign (CFC) is an easy/convenient way for federal employees to give back…More than 20,000 nonprofits participate in CFC. As a matter of fact, one of my favorite charities receive significant donations from CFC…so your dollars are going to good use. Thank you for stopping by and sharing your thoughts.
@Michael Smith, I agree with you. An active board can help nonprofits in strategic direction, vision, and fundraising. And yes, it is really important for many nonprofits to have the right perks to attract (and keep) that best talent to advance their missions. Thank you for bringing your experience to this discussion.