05-12-2017, 04:11 PM
(05-12-2017, 03:49 PM)SunsetBengal Wrote: There is a website that gives the stats on charities; how much of their proceeds actually go to their stated cause, average monies raised per year, CEO salary. I don't know if you would trust a site like that to vet your potential charity of choice. I actually stumbled upon the site, when trying to find data on the Kars for Kids charity.
I'll explain how the scams get around those sites.
Let's say I have a fake charity, Breech's Bullshit Charity. I hire a telemarketing company, which belongs to me, and pay them 80% of the donations for collecting the donations for me. Twenty percent goes to the actual charity. Ninety percent of the 20% actually goes to the people in need, 10% of the 20% goes to operational costs for Breech's Bullshit Charity.
So let's break down the dollars.
$100 contribution: $80 dollars goes to the telemarketers (me), $20 dollars goes to the charity minus the 10% operation cost (-$2) which means $18 dollars out of every $100 dollars actually goes to the charity and $82 dollars goes into my pocket or is operational costs. But, Breech's Bullshit Charity can show the websites 90% of donations go to the charity while only 10% goes to operating costs.
