Philanthropy is an act of kindness with the intent of providing a contribution of some sort to promote the welfare of others. Donations that can impact another life is indeed an act of kindness and generosity. As the holidays and end of the year are approaching, we at FACT are taking a look at charitable donations and where they go to keep you informed.
According to Giving USA, over $358 billion dollars were donated in 2014. In 2017 an estimated $410 billion dollars were donated. Approximately $286.65 billion were contributed by individuals, $66.90 billion by foundations while the remainder were given by bequests and corporations. These donations are given to various non-profit organizations.
Most of the time there is an emotional connection with a certain concern in the world. It could be that someone you know had breast cancer: perhaps a disaster occurred; maybe someone you know died of heart disease. There are so many reasons why someone gets emotional about participating in the philanthropic arena.
With the many non-profit organizations to choose from, how does one decide? What if you have many interests but can only donate to one charity? Where exactly does your money go? What means the most to you? Research the charitable organizations that interest you. It is advised that you do your homework before donating to ensure the donation is, in fact, impactful.
In each organization, money is allocated to actual programs, administrative costs, and fundraiser costs. The percentage of money that goes into actual programs is most important if you want your dollar to actually make a difference. A red flag is seeing high salaries for administration.
Also, be aware of high fund-raising costs and the efficiencies of the money being spent. Program funding is extremely important if you want donations to have an impact. Some organizations have mostly volunteers while others have costly administrators.
There are websites that you can peruse that help provide the necessary information that you are seeking before making a donation, like breakdowns of how and where the monetary contributions are allocated, etc. The more money provided in the support programs, the better.
This means that your interests are being considered and proper allocations can make a difference.