The Sierra Vista (Arizona) Herald’s October 7, 2013 Money section contained an article titled “BBB warns consumers about “pink” product claims”. The article warns of “sound-a-like” organizations who pose as breast cancer fight supporters but who actually give only pennies on the dollar to the organization – if anything at all.
So I was greatly disappointed to be told at a recent gathering that a local Wounded Warrior sponsor kept 41% of the raised amount for themselves as “administrative costs.” This reminded me of a survey I conducted of the famous/infamous Combined Federal Campaign list of charities’ administrative costs. I did the survey about ten or fifteen years ago after hearing the chairman of the CFC was indicted for fraud. He had been living pretty high on the charity hog driving Jaguars and Rolls-Royces (yes, that’s plural) as well as owning several mansions, a yacht and a private jet. A former chairperson of the National Red Cross also received considerable media attention for an extravagant salary around the same time. I found almost two hundred agencies with astronomical administrative costs. Many CFC non-governmental organizations were fronts for overseas organizations with interests inimical to America or otherwise intensely politicized. No organization sponsor, charity or non-profit organization can justify deducting more than 15% of donated funds for administrative costs. Deducting more makes that organization a for-profit business …or a de facto political fundraising machine.
Teddy Roosevelt, who led by example, once said “Anyone who is willing to sacrifice his life in the service of his country deserves a square deal. Nothing more, nothing less.” This applies doubly so for charity sponsors who may or may not have the best interest of those deserving it in mind. This includes any organization whether veteran related or not. Remember that when Congress finally vetted “veteran-owned” businesses receiving billions in federal funds, over 10,000 businesses disappeared off the list. Personally, I check to see if the organization has a lobbyist in Congress before I donate to their charity fundraiser. Lobbyists are not cheap.
The Better Business Bureau advises: “thoroughly research any claim a company makes about giving back to charity.” Remember, BBB standards require all cause-related marketing disclose certain information such as how much actually goes to the charity and what organizations are supported. Visit the BBB’s 20 Standards for Charity Accountability at www.give.org to see if your local charity measures up. Americans are undoubtedly the most generous people in the world. But sadly the BBB also says it’s necessary to “give with your head, not just your heart.”
