What are you really funding?

By: From the desk of the Journal Editorial Team

October has been branded National Breast Cancer Awareness Month in America.

All month long, we are provided with endless opportunities to support those in our country affected by breast cancer, and even more opportunities to buy pink merchandise that purports to support further research into the disease.

The force behind the Pink-Out cause is noble, and it is building. The ravages of a disease that will affect one out of every eight women in America (according to the breast cancer society) can be debilitating for friends and family as well as the actual patient.

Creating a network of survivors and supporters who drive a fundraising machine aimed at eliminating a possibly lethal disease sounds like a great plan, but the leaders in the charity research movement are frequently less scrupulous than their cause.

The most prominent example of research money going astray in recent memory is the Susan G. Komen Foundation for the Cure.

It has been reported by Reuters that in 2011, a mere 15 percent of the money donated to the foundation actually went to fund research, with 43 percent going to education, 18 percent going towards fund-raising and administrative costs, and 17 percent to help with screening and treatment of the disease.

Even if this report isn’t 100 percent accurate – not-for-profits are subject to more relaxed financial reporting standards than for-profits – it still points to a larger, disturbing trend of misdirection used by large-scale charity organizations.

In fact, some of the most trusted charitable organizations like the American Red Cross have been embroiled in funding mismanagement scandals recently.

National Public Radio exposed the American Red Cross’s financial misdoings in a 2015 article. According to the article, after raising around half a billion dollars to build homes in Haiti following the devastating earthquake of 2011, they reported that they had built 130,000 homes, but in actuality, the total number of homes built by the Red Cross in Haiti totals just six.

Where did the rest of that money go? The debate falls somewhere between wildly out of control administrative spending, and simply an increasing cost of purchasing materials and labor to build.

Whatever the reason, it doesn’t even begin to make up for almost half a billion dollars in missing funds.

However, a few bad apples doesn’t mean that there is a shortage of reliable ways to donate to charity knowing that your contribution isn’t simply going to pay for administrator’s expenses or producing more charity gear for you to buy.

Our intention is not to dissuade you from making a donation, but we hope that our suggestions below will help you make the most impact you can.

Donate your time, not your money.

One of the simplest ways you can make a safe donation is donating your time and your abilities to charity. Organizations like Habitat for Humanity and The Special Olympics are always in need of able-bodied individuals to help in construction of houses, and set-up/breakdown of sporting events.

Donating your time is especially valuable because you get to experience your effect first hand. You know exactly what you did, and you can work confidently that your contribution made a difference. Conversely, you can simply leave if you become uncomfortable with how a charity is using its resources.

Donate physical goods when you can.

Places like the American Red Cross frequently ask for money because it is easier for donors to simply send a text or make a quick phone call to complete their donation. However, disaster relief organizations, halfway houses, and family shelters are always happy to accept physical items like canned or non-perishable food, blankets, and sealed personal hygiene items.

Playing devil’s advocate, it is difficult for physical items to be misused in the same way that money is. While money can be funneled around under the guise of “administrative expenses” or “education,” physical goods are of little value to the organization but they hold high value to the individuals on the receiving end of your charity.

Look at the publicly posted financials for charities.

All charities and not-for-profits are required to post their financial statements like any for-profit company. While these statements can be confusing at times, it is important to consider the proportion of donations that actually go to the mission of the organization.

Financial statements can be doctored to show a higher proportion of cash donations going to the cause like with Komen, but most local charities do not have the time or the resources to create the same detailed level of smoke and mirrors. This brings us to our final suggestion.

Donate to local charities rather than large-scale organizations.

Once you decide to donate, look for a charity in your area that deals with the issue you wish to address. For example, if you want to help with food insecurity, consider donating to the Marion-Polk County Food Share rather than the national Meals-on-Wheels program.

While Meals-on-Wheels is a reputable charity, their large-scale focus can create difficulty in reaching local communities. This is where Marion-Polk County Food Share steps in, and they are better able to address the specific needs of a Salem and the surrounding area.