I am No Longer Giving to Charities!

[shooter311]

I am realizing my charitable donations are not best being used by giving to charities. I give to charities regularly, I give small chunks of money several times year to random charities if I get a mailer or an e-mail to one I follow. I give out microloans to people in developing countries. But what has me fired up is my auto deduction out of my pay...

My company (small company of less than 70 employees in central Maine) would have the local United Way charity come in and give a presentation about why we should give. My company would incentivize people like having drawings for prizes and and such for those who donated, etc. Anyway, not to talk money, but I was giving $40 a paycheck (bi weekly) to them. I specifically allocated my money to them to be given to a local charity that helps out teen parents. Well, recently the the local VP for UW came in to do one on one talks with people about the donations. Maybe I shouldn't care but the woman drove in in a really nice (I assume new) Mercedes, had a really nice Coach leather Laptop case, and was all done up with the hair, nails, business suit, jewelry, etc. Keep in mind, that we are talking about central Maine where the average home income is around $40k. I shouldn't judge, but during the meeting with her it was pretty much all about how based off my income I need to give more, and I am not doing enough... I was getting rather heated with the whole interaction, she was telling me about how most people in my area live below the national poverty line, and most people out there are struggling. I do very well financially for the area I live in, but this woman was clearly in the .01% (I see a car like a Mercedes maybe once a month in my area), and for her to try to shame me that I was being greedy was nuts.

Anyway, I start asking about the money I am donating and how it is being spent. Well when I decided to donate they said that if I designated a charity to give to, 100% of our donations go to that charity. Turns out that is only if the charity is on their special list of charity's they offer that for. for the last 7 years they have been taking 24% of my donations for administrative costs. I then ask how much of the 76% that is given to the charity goes to the people in need. She didn't know so I had to research it on their website, that charity takes 22%. So that means only 67% of my donation is going to teen parents, the rest is going to salaries and fund raising.

I was donating $1,040 to teen parents and only $616.51 was making it to the teen parents. How is that justifiable?

It is not like teen parents are hard to find, I called the local school and spoke with the principal (she works through the summer, I figured they were off). I told her I'd like to donate items/care packages to kids in need or teen moms. She said it was a wonderful idea and she would speak with the schools social worker to find those who needed it. I can just drop off the donations and they will discretely give the items to those in need. This seems like a way better option for my money.

I have seen some posts around here for charity to help out members, I will get more involved here and participate more towards that. I'll also keep with the micro loans, those seem to have some real impact and it technically isn't giving charity...

Feel free to call me out if I am being whiny or over the top about this, I just can't justify the overhead cost of the charities.

[glaman5266]

Rule no. 1 when giving to charities: Always research the charity first. Thoroughly.

Not saying you didn't. I'm just putting that out there for everyone else.

I think giving locally is the best way to do it. As direct as possible, where/when it will have the biggest impact. I know giving to charity/individuals is/should be a selfless act, but it's also very satisfying seeing reactions in person. Makes me feel like I'm doing some good.

[CrowsFeast]

I fully understand where you are coming from. The overhead costs of some charities are terrible and some aren't even not-for-profit! I don't donate much or often but I always try to find out how much of the money actually makes it way back out.

[shooter311]

Rule no. 1 when giving to charities: Always research the charity first. Thoroughly.

Not saying you didn't.

Feel free to say it, I clearly did not on this one! I took the rep for their word, and I feel like I was swindled with the 100% goes to the chosen charity... Sad thing is, I would have been fine with the 22%, but now that I realize how easy it is to give directly, that seems like robbery.

[maggot]

I can totally relate. Past employer was in bed with United Way - same thing as you where they would come in and push for auto-deductions. Huge social pressure. I started looking into CEO pay and administrative costs for Unity Way.... I immediately cancelled and never participated again.

[shooter311]

So this must be a common practice for the UW. The social pressure was really high, they hand out forms to everyone in the room and you need to fill out all the info right there. So everyone around you can see if you are filling out the forms or not. It seemed crazy because half my company is manufacturing so we have a lot of unskilled labor. Before the minimum wage went up in the state (almost doubled in the last several years) people were making $8 an hour and being pressured to donate straight from their paycheck. They should be been receiving the charity, not giving.

[maggot]

Exact same thing here. Even posted names of biggest donators and gave prizes out. My bosses were none to pleased when I stopped donating b/c it reflected poorly on them... social pressure.
In the end, it benefitted our employer the most... they would advertise the amount of money "the company" was donating to United Way so that they would seem very charitable, but it was really done on the backs of the employees.

[Grendel]

Yup, I still get pressured to contribute through my work to donate through United Way but refuse to do it because of the IMHO graft that happens. I find other ways to be charitable which is not always money lots of time it is with my time and skills but all done locally with organizations I can witness doing good.

[XEMON]

My rule No.1 when donating to charity: i never send money to a charity that send a rep.
rule No.2: if they send me a mailer every other week, they are spending too much on mail, paper,...
There is a few i have donated in the past and stopped because i didt like how they were doing things (this is why i dont give to the red cross anymore).

It seams like some companies are in the business of funneling money in and "distributing" it to real charity.
It can be hard to realize what you thought you were sending is just being spend on crap that doesnt help teh intended people. Running any organisation will have tome overhead, but using generosity to enrich yourself on the back of people who need it is just disgusting.

Seem like you found a great way to help, going straight to the school admin mean it does where its needed.

PS: my wife works in a low income school, they have a few people who donate and they funnel funds/good/supply/food directly to the students/families who need it. Its a great way to have 100% going to kids.

[SignOfZeta]

Lots of people hate United Way, get in line. For one thing they help fund the Boy Scouts, which is a soon to be former organization that couldn’t decide if it wanted to be homophobic or the largest child sex ring in American history (tough choices…).

That being said, don’t GIVE money away and then expect an accounting. That accounting is part of the administrative overhead you’re complaining about. You wanted to help people without thinking about it. Someone at some level has to do it instead…if you don’t like how they do it, tough. You aren’t buying their services you are GIVING money away. It’s not a transaction. They don’t owe you anything. You should have looked into their numbers first. If you had put ANY effort into that you would have discovered all those issues very quickly. There are 1000 articles online criticizing United Way.

Also, if people would pay their taxes we wouldn’t need charity. Sadly we live in a society that simply doesn’t work in some areas (metal health being a big one) and donations are the only means of helping. I hope this post doesn’t discourage people from giving.

[vijil]

Hah, I sometimes say that if people would give to charity, we wouldn't need to pay taxes. In principle I much prefer the idea of voluntary giving over the use of force (as in, if you don't pay, you'll sooner or later end up in jail).

The entire concept of mandatory tax is based on the assumption that people suck and can't be trusted. It's a correct assumption, unfortunately, but we don't have to like it. Govt aren't generally any more efficient with money than anyone else. In fact, any organisation without an existential performance-delayed threat will soon become a bloated mess.

[Cdn_Cuda]

My wife works in the job-profit and this is a huge thing for her. A lot of the larger charities work like this. United Way takes in huge money, takes their cut to fund their business and the gives to smaller charities. I believe they paid their people pretty well, with high ups making 3 figures. Their only income is from donations, so it’s coming out of what you donate. They then take the money and provide it to other charities, after taking their cut. Pretty inefficient, but United Way is a massive charity that brings in a huge amount of money and they do actually help by providing money to grassroots charities that can’t afford to raise funds otherwise. So it’s a bit of a double-edge sword.

Small charities have to struggle to get their names and stories out there and can’t compete with these massive well-know charities. And make no mistake, charities are highly competitive when it comes to funding. So United Way uses their brand cache and brings in money, takes their cut and the gives to charities that don’t have the same outreach. For some charities United Way is vital to their existence.

Often another charity with high overhead are cancer charities, especially ones that do big events. The use huge marketing companies that cost big money. So not near as much of your donations are going where you think it is.

You’ve hit the nail on the head for figuring out what charities to support though. Find out what charities overheads are. 22% is on the higher side, with 15 percent being considered good, but this isn’t alway the best metric. A well run charity might have a bit higher of an overhead but that their services may justify it. . There are lots of small charities that have lower overhead, but it’s a balance. They need to be able to fund their work so they can make money. For example, small charities have to spend money on awareness so people know who they are and what they do so people will donate. They may be to spend more to build their awareness so they can reach donors. Once the have and established donor list they can spend less on advertising and they can lower their overhead.

If you want to maximize your donations, find a small local charity. They are usually run on tight budgets and a $1,000 donation would be a massive boost for them, whereas United Way and most cancer charities it’s nothing. Some of the large local cancer event in my area require a $2,000 donation just to participate in events. These events often have slick marketing and party-like atmosphere, and that comes out of your donations.

As for the optics of this lady, you are a hundred percent correct. She should be aware of the optics and how she presents herself. Driving a high-end car and having high end clothes does not help her case and it’s should be an optic she’s aware of. She is basically just a salesperson looking to maximize her revenues. The charitable portion just happens to be what they are selling. Next time they make their sales pitch as her how much she personally donates to the cause.

[Cdn_Cuda]

Also, my mom did a monthly funding on her credit card for year from a large charity. After a year the didn’t stop the payments and my mom needed to actually canceled her credit card to stop the payments. So make sure you watch your deductions.

[Nish]

I tend to do most of my charitable giving by supporting fundraisers. Local group puts up a raffle, event, or something to raise money, I donate/buy in. I'm also on supporting local fraternal organizations. Masons, Elks, Moose, Grange, Easters Star, etc. Generally speaking everything you give them goes to a charity. Membership dues pay most of their expenses and members don't get salaries.

[SETHZILLA!]

My $.02 - keep your money, but donate your time.
Soup kitchens always need help feeding those in need.
Visit a nursing home and spend some time with a lonely senior citizen.
Help out the local VFW put up flags at Memorial Day.

During my senior year in High school, my father made me go with him to help remodel a house. It was a shelter for battered women and their kids. We were building shelves and clothes racks for families that had just left their abusive relationships. Some of them needed to exit the situation immediately with only the clothes they were wearing.

The satisfaction and pride i felt after that day was over was immeasurable. Knowing that my actions & sweat that day helped out soo many, changed my life.

I will be taking my sons along, even when they don't want to, and try to instill some of the same volunteering pride in them throughout the years.




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[ford]

I can totally relate to our OP's frustration.

I've worked for two different charities, the national executive staff for the Boy Scouts of America and Austin Habitat for Humanity (position technically funded by Americorps).

Before giving out $$$ if you have concerns about where the money is generally going check out: https://www.charitynavigator.org

This will give you a basic understanding how much of your $$$ is going to admin, fundraising and actual programs so you can find a program that fits the numbers you can stomach.

I'd also ask folks to keep in mind charities like the United Way, Boy Scouts and Habitat for Humanity (HH) have numbers that can vary region to region. For instance HH Austin is going to have different fees/program ratios than HH Dallas. Same goes for the United Way. The United Way rep who came to ask me for cash when I worked at REI was a volunteer.

The Boy Scouts is the most frustrating charity in the country. When I was involved I thought some councils did incredible work. Others I though literally could have been spawns of satan himself.

The OP is making a great step in turning off the auto check deduction.

[XEMON]

Thanks for the link, some good info on there.

[woouulf]

So I was a telemarketer for the Police alliance league (PAL) and California Organization of Police and Sheriffs (COPS) they, the organizations got 16% of of all the donation received.. Its a scam, but these organization are happy with the percentages since they dont have to do anything to get it.... ..

[Super69ur]

I don’t give to charity at all. Not one red cent.

The best way for me to make a difference for those struggling in this world, is to grow my business, and hire people who are good at what they do, but maybe just don’t have a connection or family that is in a position to help them. And pay them accordingly. For their merit. Not who the know or who they are related to.

I find that far too often, it’s who you know that gets you ahead in life, far more than what you are capable of. I pay my employees higher than anyone in the same field. By a significant margin. I retain employees that way. Steady, well-paid employment, CHANGES lives.

People driving around in 100k vehicles demanding money just piss me off. Bitch, I drive a Corolla. Screw you.

[XEMON]

That's true, and what's lacking of my employer ... They are shady af ... I'm about to jump ship before I'm stuck in a pit ...

[sniper97]

Watch CEO pay, for the Salvation Army, the CEO used to make $18,000/yr. Red Cross CEO, $1M. I don't want funds I give going to pay a CEO $1M. I think you are spot on. The suggestion to give your time is a great way to do it.