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Five Most Compelling Myths about Charities and Giving

There are many myths that surround giving money to charities. Let us look at five of the most compelling myths that surround charities and giving.

Myth Number One: Executives of all charities are paid too much.

This is definitely not the case for all charities. While some charities may have CEO’s that are far in excess of the work they do this can be said for many other types of occupations as well. Studies have shown that on average the salary earned by a charity CEO is commensurate with his or her education, work experience and level of talent. It is estimated that only 3.4 percent of the spending done by a charity is used to pay the top executives of the charity. It is important to keep in mind that charities are very complex and sophisticated organizations that deal with budgets in the millions and employ a great many people while providing many vital life affirming and life saving services to people in need of them. Strong leadership skills are required for positions of this magnitude and in order to find the right person fro the job, a competitive salary must be offered.

Myth Number Two: Old clothes are needed most after a natural disaster strikes.

Communities often come together to organize clothing drives after natural disasters take place such as earthquakes, hurricanes or floods. The assumption is that the people affected by the disasters need clothes the most. While this shows the kindness and willingness of people to help others, charities and relief agencies yearn most for cash donations from organizations and individuals to help those in need. The cash or vouchers for relief victims can be used to purchase necessary clothing from local merchants. It might be better to organize a bake sale, flea market or car wash in order to raise necessary funds for those affected by natural disasters.

Myth Number Three: A national name for a charity says it all.

Not all charities operate the same nationally and on a state level. For example, the American Cancer Society and the American Red Cross is one large national and unified organization although it does have local affiliates. There are other charities that are local chapters in a given area that operate completely independent of the big, national organization. Examples of these include the American Lung Association, Goodwill and Habitat for Humanity. Always find out if the charity’s name is actually a part of the national organization before you go ahead and make a donation to it.

Myth Number Four: The best charities spend 100 percent of their budgets on none other than program services.

Never give your hard earned money to a charity that does not know how to spend its money wisely but it is important to be aware that it is impossible for any charity to be completely effective if it does not set a certain amount of money aside for supporting the entire infrastructure of the organization as a whole.

Myth Number Five: Support charities by attending special events and so forth.

It is common to see charity dinners or special races or tournaments put on by charities to raise money where a proceeds of the money taken in goes to these charities. Be aware that while special events or purchasing products is beneficial it is even more beneficial to make a donation directly to the charity in question. In this way you know that the entire donation gets where you want it. When attending a charity gala always take the time to read the fine print regarding what percentage of the proceeds will actually find its way to the charity.