[Info] Do You Know Where Your Charity Dollars Go?

[PhylisFeinerJohnson]

These days, because of Federal budget cuts, virtually EVERY non-profit is desperately in need of funds.

I virtually get phone calls every day. The American Lung Association is calling me as I write this article. (I guess I’m on too many lists!)

But the real question you have to ask is: Not how much money you’re giving, but WHERE it’s actually going. How do you know how your charitable dollars are being spent?

(Fortunately The Epilepsy Foundation is a 3-star charity, according to the trusted Charity Navigator. It’s also ranked as a top-rated charity by the Charity Watch Organization, part of the American Institute of Philanthropy.)

But the controversy over the best-selling Three Cups of Tea, written to raise money for the Central Asia Institute (CAI) is a real eye-opener. And they’re in very hot water over the accountability of their financial practices.

Recently, CBS’ 60 Minutes aired an expose about this charity and also questioned how they spent its funds. In fact it wasn’t just building schools and hiring teachers in remote areas of Pakistan and Afghanistan.

The book was quoted as being as being ”a beautiful story and it’s a lie.”

To read the controversy surrounding Three Cups of Tea — which is just one charity — go to:

http://www.npr.org/blogs/thetwo-way...author-in-hot-water-over-alleged-fabrications and http://www.npr.org/2011/05/06/136029810/can-you-know-where-charity-dollars-go-not-easily?ft=1&f=1001

I think you’ll be surprised. And disappointed.

 

[Rae1889]

Canada is quite a bit different when it comes to charity dollars. We have breakdowns on what charitys or foundations responsibilities are as far as monies go, and for the most part, money Is used to keep the fundation open as opposed to going to those in need.

I have a list of how things are split I'll dig up and post

 

[PhylisFeinerJohnson]

Are they anything like these links?

http://www.charitynavigator.org/

http://www.charitywatch.org/

 

[Rae1889]

Grassroots Not-for-profit is a not-for-profit that has not been incorporated. It is usually more informal than any incorporated
not-for-profit. It is not necessary for a not-for-profit to incorporate. It is not necessary for it to note its name with the Companies Office.

Manitoba Incorporated Not-for-profit is an organization that has been incorporated as a non-share non-capital corporation in
Manitoba. (Although it is also possible to incorporate federally, this booklet will only look at non-profits in Manitoba). It is not a charity,
even if it exists for a charitable purpose. It cannot issue official charitable income tax receipts.

Canada Revenue Agency (CRA) Registered Charity is a not-for-profit that has applied for and been registered as
having charitable status by the federal government by filing all the necessary and on-going paperwork required by the Canada Revenue
Agency. These are the only organizations that can properly call themselves registered charities. Upon its acceptance, a registered
charity is exempt from income tax and it can issue charitable donation receipts for tax purposes. Generally, it also has to disburse
80% of the funds for which it issued charitable donation receipts on its own charitable activities or as gifts to qualified donees.

Tax Exempt means that a CRA registered charity is exempt from paying income tax under the Income Tax Act; it does not exempt
the organization from paying PST, GST, or other applicable taxes, although it may receive special considerations in that regard.

CRA Non-profit organization (NPO) is a federally registered not-for-profit organization that, according to the Canada
Revenue Agency, is a club, society, or association that is both organized and operated solely for: social welfare, civic improvement,
pleasure, recreation, or any other purpose except profit. Examples include an agricultural organization, a board of trade, a chamber of
commerce, most residential condominium corporations. In order to be a NPO, an organization cannot be a charity.

http://www.volunteermanitoba.ca/newsite/CreatingANonProfitOrg.pdf

 

[Cint]

I read "Three Cups of Tea" by Greg Mortenson and I saw the interview on 60 Minutes, so I was quite disappointed when I learned the truth. But that is why I give only to my local Epilepsy Foundation and to Jerry's Kids MDA.

 

[PhylisFeinerJohnson]

Yup. I tithe to the Epilepsy Foundation of Eastern PA. All the money from my freelance jobs goes to them!

My husband gives to World Vision (we have "adopted" a 7-year old Cambodian girl. The last child grew up to be 17!) which is run by a close personal friend of ours.

It feels good to give...but it also feels satisfying to know that your money is actually being used to HELP people in need.

 

[Bernard]

...
http://www.charitynavigator.org/
...

CURE gets 4 stars:
http://www.charitynavigator.org/index.cfm?bay=search.summary&orgid=11088

They do good work.

EFA gets 3 stars:
http://www.charitynavigator.org/index.cfm?bay=search.summary&orgid=3673

Amazing how much money they churn.