Think before donating

jayasala42 · Apr 20, 2014

After reading Manjula Reddy's article on For God's sake, I was made to contemplate whether our little donations with a good intention reaches the needy.

Keep these facts in mind when "donating". As you open your pockets for yet another natural disaster, keep the following facts in mind;

The worst offender was for the 11th year in a row, the UNICEF - CEO, who receives $1,200,000 per year, (plus use of a Rolls Royce for his exclusive use wherever he goes, and an expense account that is rumoured to be well over $150,000.) Only pennies from the actual donations goes to the UNICEF cause, less than 14 cents per one dollar of income.

The second worst offender this year is Marsha J. Evans, President and CEO of the American Red Cross. Her salary for the 2009 year was $651,957 plus expenses. She enjoys 6 weeks fully paid holidays including all related expenses during the holiday trip for her and her husband and kids and 100% fully paid health and dental plan for her and her family, for life. This means out of every dollar they bring in, only 39 cents are spent for charity.

The third worst offender for the 7th time was Brian Gallagher, President of the United Way, who receives a $375,000 base salary (U. S. Funds), plus so many numerous expense benefits it's hard to keep track as to what it is all worth, including a fully paid lifetime membership for 2 golf courses (1 in Canada, and 1 in the U. S. A.), 2 luxury vehicles, a yacht club membership,
3 major company gold credit cards for his personal expenses...and so on. This works out to 51 cents per dollar.

Fourth worst offender, again occupying fourth spot for every year since this information has been made available since 1998 is World Vision President (Canada) who receives $300,000 base salary, (plus supplied - a home valued in the $700,000 - $800,000 dollar value range, completely furnished, completely paid all housing expenses, including taxes, water/sewer, telephone/fax, HD/high speed cable, weekly maid service and pool/yard maintenance, fully paid private schooling for his children, upscale automobile and an $55,000 personal expense account for clothing/food, with a $125,000 business expense account).
Get this, because it is a "religious based" charity, it pays little to no taxes, can receive government assistance and does not have to declare were the money goes. Only 52% of the income goes towards charity.
Of the statistics taken out of 60 institutions ,onlyThe Salavtion army spends around 93% of the income towards charities.
Rotary & Lions Club uses all donations to Community Service.
Is it better to help really poor deserving students individually to pay their fees or buy books?
Jayasala 42

pantu · Apr 21, 2014

I think it is better to give the needy personally and individually! Don't give anybody to anything. Only needy deserves the best not the charity organisation's CEO.

sdiva20 · Apr 21, 2014

Just looking at those CEO's compensation is a simplistic way of looking at it. Any organization- even not- for- profit needs a capable leader who can steer the organization in the right direction. CEO's also need to pay bills and they too need to be compensated adequately for their skills and contribution. Most of them get to that position also for their ability to being big donors to contribute. Their pay in almost all cases are way lower than in private sector. Just because someone chooses to work in not for profit does not mean they will do it for free. People who get to be senior executives are highly accomplished individuals and to retain such individuals, they need to be paid decently.

jayasala42 · Apr 21, 2014

You are 100 % correct.
Jayasala 42

jayasala42 · Apr 21, 2014

Madam, I understand. People have to live a decent life and they cannot serve free. Especially when there is an inflow of huge funds, the management becomes accountable and they have to do lot of thinking before channelising.
But when there is an over expenditure on administration, the very purpose of charity is lost and the money does not reach the needy, as intended for.
Jayasala 42

sdiva20 · Apr 21, 2014

I agree Jayasala. But I looked up that article and that is not 100% accurate if I read correctly and there was some unbiased evaluation of these charities and it was found to be inaccurate.

All I am saying is while some of the CEO salary figures may seem large, there is still a need to have capable people to run them and people with those kind of experience will need to be adequately compensated. If you look at the CEO's of the whole, these CEO's get paid way less.

I had the honor of knowing a CEO of a MNC in India- She was CEO for many years and then she quit to head a charity. I am sure she still got paid a hefty amount by most standards but it would have been a huge pay cut from her previous position. But in her case, she did that because she really wanted to bring her considerable management experience and network to make a difference to those less fortunate.

I am not discounting what you say about the need to bring the money to those that need it at all. We should all do everything we can- in time and money to help those less fortunate. Thank you for sharing this article though.

jayasala42 · Apr 21, 2014

Thank you, Madam.

PushpavalliSrinivasan · Apr 21, 2014

In my opinion it is better to help a needy person who may be a relative or a known person to us. We always do like that.
PS

panda2014 · Apr 21, 2014

Yes its always better to donate on our own. Like on birthday occasion we can feed the poor and even give used clothes to the maid that comes your home , the garbage lady , the ironing lady and so many domestic help .

getstrngth · Apr 21, 2014

I definitely agree with you Jaya. I always donate to the known person and to udavum karangal. In both cases I've direct contact with them, able to find their progress, emotional bonding etc.

All these well known organizations have a wonderful heartbreaking ad. Many times I've wondered if so much amount is collected through out the year through these orgs, why does the world still have poor people? why are children with malnutrition? Shame on these organizations. I wonder how they made this big? Was it just because of publicity or some political influence?

I can just conclude that people are loosing morality. No more love or self consciousness, everything has become materialistic. I don't see people will change rather its going worse. I wish that earthquake or plane crash or some natural calamity should happen to all the culprits (who loot money be it politician or charity organizations) families and their loved ones. Totally upset.....