NPR Red Cross Piece

[thinkxingu]

There have been some posts here about the best places to donate resources, and some major organizations often get slammed for their donations-to-spending ratios (The Red Cross and Goodwill are two I've seen). There was a piece on NPR about the changes Red Cross has been making to address the issue and thought people here might be interested.

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[feb]

During WMUR's telethon yesterday a rep from the Red Cross said 91% of every dollar goes to the cause. If that is true, that sounds pretty efficient.

[thinkxingu]

During WMUR's telethon yesterday a rep from the Red Cross said 91% of every dollar goes to the cause. If that is true, that sounds pretty efficient.
Feb, one of the things the NPR piece brought up is how numbers can be manipulative. For example, 91% can refer to post-administrative costs (which can be exorbitant) or any of a number of different manipulations. Also, that money could be being spent driving empty trucks around for publicity, which a few investigative reports claim to have happened in a few of the past disasters.

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[FlyingScot]

One important issue though is that we not let ourselves off the hook when we find a particular charity is not as efficient as we would like.

It's great if we decide that a particular charity is inefficient, and then we find a better group to help. But too often people decide a particular group is inefficient, and then smugly sit back and do nothing. Much better to send $100 to a group that spends "only" x% on direct services than to do nothing.

[FlyingScot]

One important issue though is that we not let ourselves off the hook when we find a particular charity is not as efficient as we would like.

It's great if we decide that a particular charity is inefficient, and then we find a better group to help. But too often people decide a particular group is inefficient, and then smugly sit back and do nothing. Much better to send $100 to a group that spends "only" x% on direct services than to do nothing.

[Kamper]

The Salvation Army actually has the best ratio of donations received to services provided.

[Merrymeeting]

You can find a lot of data and information on these websites. Great for debunking some of the urban folk lore that floats around the internet about some of these charities.

https://www.charitynavigator.org/

https://www.charitywatch.org/home

[thinkxingu]

The Salvation Army actually has the best ratio of donations received to services provided.
Yup, meant Goodwill--updated to reflect.

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[ursa minor]

The Red Cross issue is complicated. They are a large charity and are always available to respond whether it's a local event (fires that displace families for example) or a large disaster such as Harvey. They have always been the "go to" charity when horrible events like this occur and for a lot of good reasons. Because they are large, nationwide and always available, it's reasonable (to a degree) that they would have higher overhead costs than a smaller, local organization.

That said, there's no such thing as a perfect organization and it sounds like the Red Cross is no exception. The 91% number referenced above is in relation to the dollars spent on relief. That's not the same as the percentage of funds donated in relation to dollars spent on relief, it's somewhat modified. I heard a discussion on this today, sounds like more information will be forthcoming.

I can't remember specific details at this point but they got quite a black eye in the aftermath of Katrina about some of their spending choices; we were among the many donors to the Red Cross for that disaster and I recall making a mental note to pay more attention in the future. They may well have revised their overhead and non disaster relief spending since then, I certainly hope so.

There are any number of legitimate local charities in the greater Houston area that can be located and checked out on line. (Food banks for example). We've made donations to several, I'm sure we're not in the minority by a long shot. Let's hope and pray those affected by this have better days ahead soon. They need all the help they can get.

[TiltonBB]

As you open your pockets for your next charitable contribution, please keep these facts in mind:

· The American Red Cross President and CEO Marsha J. Evans'
salary for the year was $651,957 plus expenses.

· The United Way President Brian Gallagher receives a $375,000 base salary along with numerous expense benefits.

UNICEF CEO Caryl M. Stern receives $1,200,000 per year (100k per month) plus all expenses including a ROLLS ROYCE . Less than 5 cents of your donated dollar goes to the cause.

So the message is: Be careful where you send your money!

[Woody38]

I am under the impression that AARP is matching donations and EVERY penny is going to Texas. Got this from an impeccable source, my wife.

I am a retired workaholic and continuing aquaholic.

[Merrymeeting]

As you open your pockets for your next charitable contribution, please keep these facts in mind:

· The American Red Cross President and CEO Marsha J. Evans'
salary for the year was $651,957 plus expenses.

· The United Way President Brian Gallagher receives a $375,000 base salary along with numerous expense benefits.

UNICEF CEO Caryl M. Stern receives $1,200,000 per year (100k per month) plus all expenses including a ROLLS ROYCE . Less than 5 cents of your donated dollar goes to the cause.

So the message is: Be careful where you send your money!

I struggle with messages like this one. All the organizations mentioned above would be extremely large, complex, businesses if they were for-profit, private companies. The salaries mentioned are not out of line when you consider similar CEO positions (except perhaps for the UNICEF one)

Just like in sports, while you can argue that the salaries are outrageous, they are what the market will bear, and what you need to spend for a talented CEO. Otherwise, like the sports star, they move to another team.

So, the question becomes, would these charities be better off with a lower paid, inexperienced CEO to run multi-million/billion dollar business?

I don't have an answer, but I wouldn't dismiss a charity out of hand just because the CEO makes big bucks. If the overall scorecard of the charity is top notch, they have earned it.

[KPW]

I struggle with messages like this one. All the organizations mentioned above would be extremely large, complex, businesses if they were for-profit, private companies. The salaries mentioned are not out of line when you consider similar CEO positions (except perhaps for the UNICEF one)

Just like in sports, while you can argue that the salaries are outrageous, they are what the market will bear, and what you need to spend for a talented CEO. Otherwise, like the sports star, they move to another team.

So, the question becomes, would these charities be better off with a lower paid, inexperienced CEO to run multi-million/billion dollar business?

I don't have an answer, but I wouldn't dismiss a charity out of hand just because the CEO makes big bucks. If the overall scorecard of the charity is top notch, they have earned it.


I completely agree!

[MAXUM]

Samaritan’s Purse is an outstanding organization with an impeccable reputation and very low admin overhead. They are actively engaged in relief efforts in TX.

Nothing wrong with being selective in who you choose to donate to, it defeats the purpose to donate funds to help those in need only to find out a large percentage never makes it to the intended target. Do your homework but as already mentioned no charity can run without some overhead - but there is no doubt some are better run than others. Choose wisely but there is no excuse to sit on the sidelines and do nothing when so many are hurting right now.

[Newbiesaukee]

This is a complex issue. I, too, donated through AARP which matches donation. AARP does say that 100% of the funds go to relief organizations working directly working in Texas but, no info on the way those organizations distribute funds. I still donated through AARP, only point is, it is a complex situation.

[FlyingScot]

TiltonBB--Any thoughts on what charities we should support to help folks in Houston or others in need?

[TiltonBB]

TiltonBB--Any thoughts on what charities we should support to help folks in Houston or others in need?

To answer your question: I am not sure. I haven't spent any time looking into it.

It is sad, but it seems that every time there is money available from disasters ranging from September 11th to Katrina the fraudsters and phonies come out of the woodwork. There are a lot of articles written about this. I have attached links to a couple of them.

In the aftermath of the Gulf oil spill there were so many fraudulent claims filed that BP hired Louis Freeh, the former FBI director, to investigate claims. He hired numerous retired FBI agents to work full time investigating claims. So far over 300 people have been convicted, and that was BP's money with the FBI investigating. The total claims thus far are in excess of $20 billion.

https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=9&cad=rja&uact=8&ved=0ahUKEwj-nKrut4bWAhXIMSYKHSRZDVYQFghZMAg&url=https%3A%2F%2Fwww.ft.com%2Fcontent%2F6428c082-db1c-11e6-9d7c-be108f1c1dce&usg=AFQjCNFBoA_v2UK785-yno19uDBWcg425A

If the link doesn't work Google this: More than 100 jailed for fake BP oil spill claims

When it is private money without the oversight of law enforcement I am sure the amount of fraud is huge. It is a sad comment on society that so many people are looking for a free ride.

Another article related to Harvey:

Don't get duped: How to avoid post-Harvey charity scams - Aug. 30, 2017

http://money.cnn.com/2017/08/30/news/harvey-charity-fraud/index.html

[Hillcountry]

Today's news: Muslim "activist" Linda sarsour ( i cringe even to mention this POS name...I see her as a dangerous person to our country)
Created a fraudulent fund in the name of hurricane Harvey relief to fund her own PAC group.
Our beautiful USA is eroding quickly with all the crap going on...sad.

[joey2665]

Today's news: Muslim "activist" Linda sarsour ( i cringe even to mention this POS name...I see her as a dangerous person to our country)
Created a fraudulent fund in the name of hurricane Harvey relief to fund her own PAC group.
Our beautiful USA is eroding quickly with all the crap going on...sad.

Really don't want to get into a political discussion on the forum so I will just say I whole heartedly AGREE!!!!

[Cobalt 25]

Hillcountry, could you please provide the name of the fraudulent fund for Harvey relief Linda Sarsour created?

[Hillcountry]

Hillcountry, could you please provide the name of the fraudulent fund for Harvey relief Linda Sarsour created?

Just google "LINDA SARSOUR FRAUDULENT FUND"
All the stories from different news organizations come up.

[FlyingScot]

Just google "LINDA SARSOUR FRAUDULENT FUND"
All the stories from different news organizations come up.

It's cold and rainy, and I hadn't heard of Linda Sarsour, so I did Google it. I'm sure I would disagree with her on MANY things, and I don't think it's right to piggy back politics on storm relief.

But this is not fraud. Maybe irritating clickbait at worse--she was accurate in where the money is going.

Also, my Google search did not produce many "news organizations", it was more like right wing political action websites that often distort the truth or just make stuff up. Just because there are a bunch of them, it does not mean they are accurate. Like Sarsour's pitch, they masquerade as something they are not.

[Hillcountry]

It's cold and rainy, and I hadn't heard of Linda Sarsour, so I did Google it. I'm sure I would disagree with her on MANY things, and I don't think it's right to piggy back politics on storm relief.

But this is not fraud. Maybe irritating clickbait at worse--she was accurate in where the money is going.

Also, my Google search did not produce many "news organizations", it was more like right wing political action websites that often distort the truth or just make stuff up. Just because there are a bunch of them, it does not mean they are accurate. Like Sarsour's pitch, they masquerade as something they are not.

Still fraud in my opinion...

[thinkxingu]

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[Hillcountry]

Believe whatever floats your boats...if she indeed used a link to a "community organizing website" that had NOTHING to do with true RELIEF for victims of Harvey and only channeled funds to themselves, this, in my opinion, is a scam to fund her own beliefs which are to bring down the USA as I know and love it.
Period.

[Music Man]

Feb, one of the things the NPR piece brought up is how numbers can be manipulative. For example, 91% can refer to post-administrative costs (which can be exorbitant) or any of a number of different manipulations. Also, that money could be being spent driving empty trucks around for publicity, which a few investigative reports claim to have happened in a few of the past disasters.
Exactly. That's why I only donate to local groups that I've gotten to know. (and by local, I mean working locally, not just local to NH - for example, the Gospel Rescue Mission in Tucson: I volunteered there when I lived there and know the folks and the work they do).

The Red Cross is definitely off my list after a few episodes with personal friends. One family, whose house was struck by lightning and burned to the ground, was denied ANY assistance from the Red Cross "because they had insurance". It didn't matter that they lost everything except one car and the cash one of the kids had in their pocket - they were told to simply "figure it out".

Another friend, who was a volunteer medical doctor, quit working with the Red Cross after discovering that ALL donations go into a single fund and are used wherever the Red Cross decides (a process she found quite alarming as well), regardless of the donation's designation. Which is to say, the $100 you donate for "Harvey victims" may not go there at all, ever.

So, unfortunately, caveat emptor applies to charity as well.