How Much of Your Money Actually Goes to Charity?

Aug 2013

by pamela

When you’re at the grocery store, and they ask to donate a dollar to charity, does it ever occur to you that maybe this dollar goes somewhere else other then to charity? To be honest, this thought has never crossed my mind. I often think that my full dollar will go straight to the charity. However, after doing some research, I have learned that there is a lot that goes on with the preparation of a charity.

In order to form a successful charity, there must be administration and fundraising. People involved in the admin and fundraising aspect of the charity do all the work to make these charities happen.

For example, if you are donating a dollar to the Red Cross. A total of nine cents of your dollar will be going to the Red Cross organization, where five of the cents would go to the fundraising costs and four cents to administrative expenses.

Typically there will always be a small portion of the donation going towards certain expenses, and according to Charity Watch, 91% of expenses going straight to the cause is actually a high amount. It is highly recommended now to see how much of the donations go straight to the cause, Charity Watch advises that consumers should only donate to charities that use at least 75% of donations for direct aid.

Now the real question is, do we still donate when our full dollar isn’t going directly to the victims intended to help? Absolutely. A charity cannot function without its team. Charities like the Red Cross need money to keep their organization running in order to raise funds, pay employees, and ensure that the money they receive is being used properly. Even though your full dollar might not be going straight to the victims, it is still being used for good.