Charitable organizations perform a vital function in our society. They step in to fill the gaps for those people who are being left behind through no fault of their own.
The U.S. government as well as state and local governments have resources to help. However, the need is great and what taxpayer dollars provide in terms of a social safety net is not enough.
That’s where charitable organizations come in.
Donations from average people keep these groups going. Statistics show it’s a great investment to donate to a charity. For every $1 donated by the public, the people in need get about $3 in benefits.
Furthermore, helping others through charity uplifts everyone. It has a ripple effect that cascades through the economy in a way that uplifts the well-off and the poor alike. Charities make it possible to create jobs, teach skills to clients and volunteers and improve the overall quality of life in the nation.
When you donate to a local charity, think of it as investing in the future of your community.
For a charity to be considered legitimate, it must meet strict federal guidelines that make it what the IRS calls a nonprofit organization that is designated as a 510(c)3. That means the reason it exists is to provide a clear public benefit while furthering worthy social causes.
While it’s that not all charitable organizations are well-organized and well managed, the majority of them spend as little as possible on overhead, payment to managers, rent of facilities, promotion, operating costs and other ancillary items that do not go directly to those in need.
To maintain its 501(c)3 status, a charitable organization must open its books to public scrutiny. There are even organizations that are dedicated to examining the finances of charities. One example is Great Nonprofits. The American press corps also performs a watchdog function on charities. There have been many cases wherein an organization’s CEO has been called out for spending too much money on personal expenses or using donated funds to gain unnecessary perks.
By and large, these cases are the exception.
Charities work hard to solicit dollars from the general public. The best get that job done by being highly transparent about what the money is being spent on. They also show solid results by clearly demonstrating how the lives of people are improved through the good work they perform.