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How is the administrative staff and other workers paid by charity organizations?
For example disaster relief, starvation or to donate for an orphan. I think the charity organizations keep some % of the donated money to pay their administrative staff and other workers of their organization. If I give $10.00, would the whole amount reach the poor person? Or does the charity organization buy food and clothes form this money and send it to the poor? Obviously, I never will know whether the needy has benefited from my gift. Although, I receive a 'thank you' reply from the organization.
Organizations do not hand out money to poor people. They provide them with services. And these services have to be paid for. To provide these services, organizations have to rent facilities, buy equipment, pay utilities, pay staff (accountants to ensure money is accounted for and spent appropriately, program directors to make sure programs are delivered correctly and to train volunteers to help, marketing people to make sure local people know about the services and that donors know what the nonprofit is doing, HR managers to make sure hiring laws are adhered to), and on and on. So, IMO, 100% of your donation goes to help people. For instance, if an organization helps poor people learn skills so they can get jobs, and the classes are taught by teachers that are paid to do this work, then would you call the teacher's salaries administrative costs or program costs?
If you want to know if a nonprofit is doing good work with your money:
-- look at what services they provide and what they have accomplished. Are they only asking for money without also talking about how many people they have helped, what services they have provided, etc.?
-- are there testimonials from those that are helping, saying that, indeed, they have been helped?
-- does the organization focus more on messages about "please send us money or our doors will close" rather than "here are people helped by our organization?"
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