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  • Subject area(s): Marketing
  • Price: Free download
  • Published on: 14th September 2019
  • File format: Text
  • Number of pages: 2

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Greediness in Charities

Have you ever wondered where your donation to a charity goes? Does it go to the actual cause or to the marketing? Have charities started to become greedy?  Some may even wonder if it goes to the founder of the charity.  Some charities use their profits for their own wellbeing. It has been known that several charities who receive generous donations use the donations for numerous things other than to the cause. Charities should have to give a set percentage of all makings to the actual cause.

There are many things to take into consideration when starting a charity. For example, how will you tell people about it? Who will oversee the money? Many charities spend money on public broadcasting and media. They must pay for commercials they may want to broadcast. According to CharityNavigator.org, most of the expenses for fundraising goes to telemarketing. Telemarketing is where a salesperson will call the prospective donors and ask them if they would be interested in donating money towards whatever because it is. CBS News says “50 percent of donations received by telemarketing goes to the telemarketing firms.” Of which the other 50 percent is left for the charity, but other expenses haven't been taken out yet.

An article which includes a list of “America's Worst Charities” created by cironline.org, the Center for Investigative Reporting says the charities are examined based on money raised, money spent, and money given to the cause. Watchdog groups, non­governmental groups who monitor branches of state or federal governments for fraud, waste, abuse, corruption, and much more, says no more than 35 percent of donations should go to fundraising costs. The American Red Cross CEO receives $1,200,000 per year. But what some people don't know is about $0. 39 of each dollar they bring in goes to related charity cases. Marsha J. Evans, the CEO, enjoys 6 weeks paid vacations, 100% fully paid dental and health plans for both her and her family. But it's not just the CEO who receives money, employees do as well. An average of nine cents of every dollar donated goes to employee salaries and fundraising expenses. This may not seem like a lot, but it is. If you donate $3,000, nearly $300 goes to administrative costs. The American Red Cross is one of the lower paying charities. There are more charities who pay more than 30 cents of each dollar to employee salaries and expenses. CEO John R. Seffrin of American Cancer Society makes $1,404,269. Is this too much? Yes, it is. These CEOs are running charities which is to help the cause.

Feeding America, a charity who helps feed people through food pantries, soup kitchen and shelters, puts 98% of donations toward feeding the hungry. This is because of their insurer Allstate. If more people and businesses could donate their time to help charities, it could help increase the percent of money that goes to help the cause. Even if a business says they already donate money, they could donate their time and effort instead. But for fundraising websites such as GoFundMe, it would be a different case. GoFundMe charges transaction fees and extra credit card processing fees. 5 percent of donations goes towards transaction fees and around 3 percent towards credit card processing fees. Many people don't know this. Like all charities, even those online can still lie. In this case, the charity would be committing fraud because they're using the money for things other than what they claimed.

Although there are some charities who get caught in the act of using donations for personal things such as vacations, houses, vehicles, and much more. ConsumerReports.org says “Earlier this year, the Federal Trade Commission and law enforcement partners from every state and the District of Columbia charged four cancers charities with defrauding consumers of more than $187 million. Instead of helping cancer patients, the heads of the Cancer Fund of America, Cancer Support Services, Children's Cancer Fund of America, and the Breast Cancer Society allegedly funneled donations into luxury cruises, college tuition for family members and friends, gym memberships, sporting event and concert tickets, and even dating website memberships.” Charities are supposed to help whatever cause it is for.

I believe that charities should have to give at least 90 percent of the donations they receive to the specific cause. I think that some charities are greedy with the proceeds and use them for their own personal life. People need to be more educated on where their money is going when it comes to donating. Charities were made to help the people in need, so why is so much of the money going to places it shouldn't be?

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