Wednesday, September 15, 2010

Charity is a business

Dismas Charities purchased luxury suites in the new downtown arena. They explained the money came from investments not donations. I guess the acquisition of the investments was a miraculous occurrence and purchase with denotations. Why could they do this? Because, charities are not accountable to the donors.

United Way provided a service when it began. It cut down solicitations for charities by combining them into one request at the work place with payroll deductions. After making a pledge a worker could say I gave at the office. This did cut down on solicitations.

It also grew new charities. Practically anybody with a charitable idea could get funded through the United Way. These new charities didn't have to explain their goals or be accountable for delivery of services to the donor. They need only satisfy the United Way criteria.

The last time I reviewed the list of charities on the United Way list I would not contribute to about a third of them. You may agree and that is why you designate your contribution.

It isn't distributed like you think. Each charity has a goal amount established by United Way. Let's say Charity ABC, your designated charity, goal is 10% of the total for all charities. Charity DEF, to which you would never donate, goal is 5%. A successful United Way campaign would reach 100% of the total for all charities. If ABC reached 80% of its goal through designated pledges and needs $20,000 to reach its stated goal. After all designated amounts were subtracted there was $1,000,000 undesignated. You would believe ABC would get $100,000 or its 10% share of the undesignated. It only gets $20,000, the amount needed to reach its goal. Charity DEF got zero designated pledges. Yet it likewise received its total goal amount.

I recommend giving directly to your chosen charity(s). Only the donor can determine accountability.

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