When you think of a charity, you might imagine that kindness, compassion, and organization work tirelessly to make the world a better place. This is what many nonprofits do. However, not all charities have pure intentions, or at least not fully financial transparency.
In fact, some charities charge amazing funds every year while quietly spending a lot of administrative wages, marketing or administrative costs rather than their established tasks. Worse, when deeper dives tell a completely different story, some people use confusing financial reports to make themselves look lean and selfless.
Let’s take a closer look at 10 charities facing criticism (and retain) money.
1. Wounded Warrior Project
The Wounded Warriors Program was originally established to help injured veterans and developed rapidly, and so was its controversy.
The report surfaced in the mid-2010s, and the charity spent millions on luxury conferences, travel and salaries rather than direct assistance to veterans. Despite leadership changes and reforms, the Wounded Warrior Project remains a cautionary tale of explosive growth, big money and vague priorities.
2. Children want the Internet
The Children’s Hope Network is often mistaken for a highly respected member foundation, and people have long been criticized for spending more fundraising jobs and corporate salaries rather than actually helping sick kids. The survey shows that only a small portion of the donations are actually to give wishes, one of the most notorious charities in the United States.
3. American Breast Cancer Foundation
Despite its noble mission, the American Breast Cancer Foundation is accused of transferring more donations to professional fundraising companies rather than cancer research or patient support. Watchdog groups like charity Navigator have had poor ratings on transparency and financial responsibility for years.
4. National Veterans Service Fund
The charity claims to provide support services for veterans, but reportedly only a small percentage of income reached those in need. Instead, most of the funds are spent on telemarketing and administrative expenses. If you’ve ever been bombarded by a phone call asking to donate to veterans, then it’s very likely from an organization like this.
5. SPCA International
Animal lovers may be shocked to learn that SPCA International is associated with the beloved local SPCA but still faces scrutiny on how to handle the donation. Critics say most of the money raised is not to rescue animals, but to get involved in marketing and fundraising efforts.
6. Police Protection Fund
Donating money to support the police sounds like a noble cause. However, the Police Protection Fund has been accused of spending most of its budget on fundraising operations, while the actual official assistance program is only a small part. In some states, regulators have fined organizations for deceptive practices.
7. National Foundation for Disabled Veterans
The nonprofit claims to help veterans with disabilities, but its financial records tell a vague story. The survey shows that a large portion of the donations are used for direct mail fundraising activities rather than actual senior assistance. Regulators always rank poorly on the organization’s accountability.
8. Firefighters Charity Foundation
Like other nonprofits focusing on emergency services, the Firefighter Charity Foundation drags emotional heartstrings, but critics argue that it has little real support. The report shows that more than 80% of the funds raised are spent on fundraising and administrative expenses, rather than directly assisting firefighters or their families.
9. International Children’s Wish Foundation
The donor’s name is so similar to the willing name, it’s easy for donors to believe that their money directly gives children the dreams. Unfortunately, the organization faces spending most of the donations on fundraising costs, reducing the cost of actual wishing activities.
10. American Cancer Fund
Emotionally, few people are as compelling as charities that claim to help cancer patients. However, the financial practices of the American Cancer Fund have become infamous. It is reported that instead of spending most of the money on patient support or research, it is better to spend a lot of money on telesales companies and executive compensation. In fact, the organization was part of a large-scale Federal Trade Commission that fraudulently charitable a few years ago.
How do you protect your donations?
It’s frustrating to realize that not every charity deserves the blind trust we often give. But that’s not a reason to stop giving altogether. This is for a smarter call. Here are a few ways to make sure your money actually helps:
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Research charities such as charity navigators, Guidestar or Better Business Burinau’s Wise Dedication Alliance.
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Before giving, look at the financial status of a charity – especially how much of its revenue is used for planning and fundraising and management.
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Beware of high-pressure bidding, especially by phone.
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Prioritize local transparent organizations whenever possible.
A little bit of research can bring you up ahead of time and really make the difference between making the impact.
There are still trustworthy charities there
Charities operate under the important banner of public trust. When this trust is abused, it not only wastes money, but also pays again because of the will of the kind. By staying informed and asking tough questions, you can make sure that donations improve the reasons you care about, rather than filling someone else’s salary. Remember: a real charity is about service, not profit.
Have you ever donated money to a charity just to discover it later and find out that it doesn’t use the money as you think? How does it change the way you give now?
Read more:
How to support philanthropy that promotes gender equality
What is the best charity to donate this year?
Riley is an Arizona native with over nine years of writing experience. From personal finance to travel to digital marketing to pop culture, she wrote everything in the sun. When she is not writing, she will spend time outside, reading or embracing two corgis.
