Wednesday, June 26, 2013


A new report has just been released detailing how well many charities are doing (see the CNN story). The standard metric for success is what fraction of the funds raised actually go to the cause that is represented. A charity that has an overhead of 35% or less is considered as efficient and reputable. However, the report released showed that many charities are little more than fronts for their founders to pocket millions of dollars, all while covering their tracks with a sickenly polished and calculated layer of deceit and fraud. Some of the reports findings include:
  • The 50 worst charities in America give less than 4% of donations to aid. Over a decade, one diabetes charity raised $14 million dollars and only gave away $10,000. Several pocketed every penny that they received.
  • Many of the operators of the charities secretly paid themselves exorbitant "consulting fees" on top of their already high salaries.
  • Most of the nonprofits were found to be little more than fronts for the for-profit fund raising companies that gather the donations.
  • To inflate their reported giving, many charities use accounting tricks and comically inflate the value of donated items that they hand out to the needy.
When the founders of the charities were approached about the reports findings, most declined to answer questions about their programs or referred the reporters to their attorneys. Many became threatening and tried to intimidate the investigators.

Apart from the sickeningly selfish behavior of these flesh-eating vultures, they poison the well for the honest charities that make a real difference. They cause people to become more guarded and suspicious regarding their generosity. There should be a special corner of hell set aside for these monsters.