Your donations, where does the money go?
In a recent article that came out in the Toronto Star, in Canada they did a investigative report on MADD of Canada. The report entitled MADD’s `exorbitant costs’ anger charity’s volunteers filed by investigative reporter Kevin Donovan. Great work Kevin!
This report is shocking, but enlightening about where the money goes when caring citizens and victims of drunk drivers donate to MADD of Canada. The report shows that a mere 19% of every dollar goes toward charitable work. This has volunteers of the organization in rage. Volunteer being the key word here. The real backbone and workers of the organization. The ones that visit victims and help them with kindness. The unpaid workers of MADD of Canada, who are usually the family members or friends of a drunk driver victim.
While MADD of Canada claims that 83.6 % of the money donated goes to MADD of Canada programs. The financial documents of the organization show differently. The volunteers of the organization are calling for them to “clean up their act”. John Bates, who started the Canada based group back in 1982 called PRIDE (People to Reduce Impaired Driving Everywhere) says MADD has taken a national tragedy and turned it into a fund raising machine. Bates group originally created when his friend’s daughter was killed by a drunk driver. In 1990 MADD USA expressed interest in coming into Canada, they combined Bates group and two others to form MADD of Canada.
This investigative report sparked my interest into what is going on behind the scenes of the US based charity organization, so I paid a visit to the MADD web site. Like many charity organizations, MADD (Mothers Against Drunk Drivers) started off with a great concept and good intentions. Could MADD here in the United States be guilty of the same type of internal activity as MADD of Canada?
A charity is required by the IRS to file a form 990 and the same information is available to the public. At the MADD web site the form 990 for year 2005 can be easily found in the annual report section of the MADD web site. The MADD annual report is made to show the public the good work that the organization does.
If we look at the top 5 paid employees of the MADD charity organization we see that the amount compensated for 40+ hours ranges from nearly $105,000.00 to right at $72,000.00 with the number of employees making over $50,000.00 listed as 38. This does not include the officers, directors or trustees. While the program CEO is only paid $55,000.00 a year, in contrast the director of program and development is compensated $152,408.00 yearly.
With the better part of the charitable work that MADD does being achieved on the local level by the volunteers and paid fund raisers, it may be that we need to have a closer look at what this charity does here at home. Bottom line, this charity winds up putting $.20 of the dollar you donate to charitable work.
According to the government web site for the FTC (Federal Trade Commission) there was 212 billion dollars collected by 700,000 government recognized charities in the year 2001. If you donate to a charity, make sure that your hard earned dollar goes as much towards the cause as possible. The better charities put between 60 to 80 % of the donation toward the charitable work.
What you can do.
Check the charity out before donating to them.
There are ways that you can check a charity out online or by telephone. A few good sources to check out a charity include Charity Navigator, the Better Business Charity Site or by telephone at (703) 276-0100 and the FTC Charity Fraud site which has a large list of resources here.
Telephone Calls:
If the charity is calling you on the telephone, only donate then if you already know the charity and have donated before. Many charities use paid fund raisers to make telephone calls. If someone calls you on the phone asking for money for charity, ask them if they are being paid to call you. If so, find out how much they take of the donation for their service. Additionally, never give out your credit card, bank account or personal information over the phone. Try to get the address for the charity to send in your donation. This cuts out the middle man giving more of your dollar to the cause.
Summary: It is a shame that we need to check out a organization or program before donating money, however, you can see it has become necessary. Most organizations start out with the victim or less fortunate in mind. Greed can spread rapidly in a financial environment, so check your charities annual statement. When donating, you are best to donate at the local level.
Be careful of scammers that prey on your senses and kindness.
Do not stop donating to what you believe in, Believe in what you are donating to.
Source and credits:
http://www.charitynavigator.org/index.cfm/bay/search.summary/orgid/4129.htm
http://www.ftc.gov/bcp/conline/pubs/tmarkg/charity.htm
http://www.thestar.com/
MADD (Mothers Against Drunk Driving) form 990 as public information
December 24th, 2006 at 10:13 am
Think that this one is bad. Check out United Way……it will make you sick. I had a great uncle would worked for Columbia Gas in Indianapolis, Indiana. When my Uncle went from hourly to management he had no choice but to give at least one hour of his 40 hour wage to United Way. The salaries are off the scale at United Way.
June 14th, 2009 at 10:48 pm
Great article you have .. thank you…. I just hope the Better Business Charity Site has NOTHING to do with the B.B.B. they were convicted of numerous and similar charges ..???