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  • 2005-11-13 (xsd:date)
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  • Think Before You Donate! (en)
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  • When deciding which charities to donate to, many people consider an important factor to be the efficiency of these organizations — that is, what percentage of the monies taken in by a given charity goes to funding its mission rather than being eaten up by costs such as fundraising activities, salaries, and other administrative overhead. The e-mail reproduced above, which began circulating in 2005 and has been re-circulated every year since then around Christmastime, attempts to steer potential donors away from inefficient charities. Unfortunately, much of the information it presents was inaccurate back in 2005, and it has grown only more so in the years since then, resulting in a misleading and outdated view of various charities. We attempt to present accurate and up-to-date information about the named charities below. The following efficiency information is derived from the Charity Navigator web site, the GuideStar web site and Forbes magazine's November 2009 special report on the 200 Largest U.S. Charities. Salary information is taken from Schedule J (Compensation Information) of the various charities' IRS Form 990 filings, an annual reporting return that certain federally tax-exempt organizations must file with the IRS which provides information on the filing organization's mission, programs, and finances. (In the context of this article, the term efficiency refers to the percentage of total budget/expenses that each listed organization spends on providing charitable programs and services, while the term compensation or pay includes salary, one-time payments, and deferred compensation.) A 2011 addendum to the original message presented the following information: According to the most recent available Form 990 filings, all of these statements are false and/or misleading (in large part because the National Commanders are not necessarily the top business executives of these organizations): Unfortunately, the six veterans-related charitable organizations mentioned above don't receive very high marks for efficiency (as determined by Charity Navigator, the BBB, or Form 990 information):