Are most non-profits largely a scam?

[Anonymous]

I see several people around me starting non-profits, they get paid by it, their kids get resume bumps by it and social life prospers with it. They do some good work but most of the donations go towards administrative expenses and salaries so net effect is low. We give as much in donations as possible but sometimes it feels like we are only supporting lifestyles of people who can't find other jobs. Is it true or just skepticism?

[Anonymous]

"most" is a strong word. Check the IRS determination letter and their 990s if in doubt.

[Anonymous]

Non-profits started by kids (and their parents) are IMO a scam. Their efforts and money would be much better put towards working with an already-established, professionally run non-profit organization.

[Anonymous]

I feel that way about all of them, including universities and large non-profits!

[Anonymous]

Its frustrating how to help people if taxes go towards wars and charity towards administrators. There should be a more effective and efficient way for our tax and charity dollars to reach people in need and do overall good for all, in need or not.

[Anonymous]

Many for sure.

[Anonymous]

Anonymous wrote:"most" is a strong word. Check the IRS determination letter and their 990s if in doubt.

This. You can see how much of their funds are going to non-program expenses, or fundraising, for example.

[Anonymous]

Use Charity watch website.

[Anonymous]

Anonymous wrote:Non-profits started by kids (and their parents) are IMO a scam. Their efforts and money would be much better put towards working with an already-established, professionally run non-profit organization.

Agreed.

The kids and their parents should focus on fundraising for established nonprofits rather than duplicating efforts or diverting donations.

But most of the big nonprofits that have been around for ages and employ legit staff are not scams. Rather, they provide critical services and make an impact.

[Anonymous]

Some can be a front for money-laundering.

Never donate to a non-profit unless you are sure they have a great reputation in their field.

I have donated for years to Doctors Without Borders. It's one of the organizations with the most impact and least overhead and it's business is literally to save the lives of humans in war zones and other critical areas.

[Anonymous]

I cant speak to ones started by kids, but i will never understand the reluctance to pay nonprofit staff. Like coordinating complex service delivery and managing finances can easily be done by volunteers?

[Anonymous]

Yes

[Anonymous]

Anonymous wrote:

Anonymous wrote:Non-profits started by kids (and their parents) are IMO a scam. Their efforts and money would be much better put towards working with an already-established, professionally run non-profit organization.

Agreed.

The kids and their parents should focus on fundraising for established nonprofits rather than duplicating efforts or diverting donations.

But most of the big nonprofits that have been around for ages and employ legit staff are not scams. Rather, they provide critical services and make an impact.

They are just resume builders for the kids.

[Anonymous]

Anonymous wrote:Some can be a front for money-laundering.

Never donate to a non-profit unless you are sure they have a great reputation in their field.

I have donated for years to Doctors Without Borders. It's one of the organizations with the most impact and least overhead and it's business is literally to save the lives of humans in war zones and other critical areas.

Tunnels to Towers is another legit non profit with a wonderful mission.

[Anonymous]

There are what I call real nonprofits and there are all the others that take advantage of the designation.