This is the season for giving to charities — and maybe throwing your money away.
Let’s assume that most charities are good. They’re sincere, effective and legitimate. But too many are inefficient, self-serving or even fake.
Too often, donors are filling the pockets of professional fundraisers rather than helping the needy or a worthy cause. The donation becomes a lump of coal.
“We try to assure that charitable money goes to help people instead of being misdirected to noncharitable purposes — like into the personal bank accounts of board members,” says California Attorney General Rob Bonta. “We’re talking about millions of dollars.”
Many charities net 80 percent to 90 percent or even more of the donations collected by their paid fundraisers. But many also receive as little as 5 percent to 25 percent — or worse. Some even end up owing a fundraiser money because overhead exceeds the amount collected.
“Operation costs shouldn’t be more than 50 percent,” Bonta says.
I’d say 35 percent tops. If more than 35 cents of my dollar are going into a fundraiser’s wallet, count me out.
The attorney general each year prepares a lengthy report on charitable fundraisers. It shows how much they collect — and how much they turn over to the charity or keep themselves.
“Fraudulent organizations are always seeking to capitalize on people’s desire to help,” Bonta cautioned.
“Do your research before giving. Find out how the charity spends its donations. How much is spent directly on the charitable cause? How much goes to overhead and employee compensation?” In Washington, information about charitable fundraisers is published by the secretary of state at https://www.sos.wa.gov/charities.
But more likely, you’re too harried with the holidays. Moreover, you don’t have much time left to send out charitable donations before Jan. 1 so they can be deducted on 2021 income tax returns.
So, you wing it.
The attorney general’s report shows the total amount of donations collected nationally by fundraisers soliciting in California. Most charities don’t use independent fundraisers, so the report provides only a partial picture.
But those fundraisers surveyed collected slightly more than $1 billion in 2020, up $220 million over 2019.
The good news is that charities overall received 82 percent of the haul, 3.4 percent higher than in 2019 and 13.2 percent more than five years earlier.
A major reason for charities scoring bigger cuts and donors kicking in more money is that increasing numbers of people are contributing online. There’s less overhead soliciting electronically than by phone or mail. And it’s easier for a donor than writing a check and mailing it. At least for younger generations.
The shady charities often use seductive words in their titles such as “cancer,” “veterans,” “firefighters” and “children.” They’re leeching off legitimate charities.
The safest bet is to donate directly to local charities whose work you can observe.
But for charities that spend less than 65 cents of the donated dollar as advertised — or flood my mailbox and call incessantly — bah, humbug.
George Skelton has covered government and politics for nearly 60 years and for The Los Angeles Times since 1974.
