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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]It’s very clear that most of the posters here do not have any actual nonprofit or charity experience. It costs money to run those organizations. You need staff. You need benefits to attract and keep good staff. There’s overhead. Depending on how you set up the organization and where it’s located, you may have to pay taxes on certain things. LOTS of nonprofits and charities invest a portion of their funds so that the money continues to grow even if donations are down. There’s fundraising and marketing costs. You need money to pay independent auditors. The list goes on.

You may not want to hear this, but nonprofits and charities are businesses too; the only difference is where the profit goes at the end of the day. People who complain that not enough of their dollar is going to the mission or that a nonprofit CEO is getting paid too much don’t understand this. Business is all about money. It costs to money make money. It’s the exact same in nonprofits.

This is not to say you shouldn’t be skeptical. You absolutely should. Do your research and ask questions. If something doesn’t seem right then it’s probably not. If you can’t find an organizations records or they are not upfront about those things, then yeah, that’s shady.

But every time I see people posting and complaining that not enough of their dollar is going to the mission, I think it’s really  just doing a disservice to nonprofits and charities because that makes people not want to donate. When in reality nonprofits need operational money too. Do you want a successful nonprofit? One that brings in millions and millions a year? Then you have to have the infrastructure and the staff who has the ability to be able to bring that in. That all costs MONEY.

And no, I am not and do not claim to be related to hatmakers or their charity in anyway. Just somebody who reads these threads, agrees with most things that have been said, and also has worked in nonprofits for the last 30 years. The last thing I will say is that giving circles inherently are not shady. Again be skeptical into your research, but giving circles have been around for a very long time and a lot of them do good work.[/quote]

Are you that daft?  No one said there isn’t overhead or shouldn’t be reasonable administrative costs. NonProfits and Charities are HUGE business. However, to be skeptical and question how LC is better than me giving directly to a cause that I have researched and decided worthy?  What make them better?  What value are they providing. [/quote]

Yes I’m so daft. So please point me to where anyone said going through LC is better than giving directly, or where anyone said not do give directly, or where anyone said not to question or do your own research. I’ll wait. [/quote]

1st: Thanks for waiting. Wtf?  2nd:  You intimated that we don’t know or understand that there are administrative costs and overhead. I think almost everyone here understands that there are many costs to running charities, and there are paid staff, which is totally fine. But many question the amount of the “admin” costs and the dilution of money in a 2 step process that further deducts more money before it actually gets to the parties for which the donations are intended.  That’s the point nearly everyone replying is making, genius. Further, a giving circle is good because it makes larger donations for a greater impact?  OK, I understand the logic to a point, but what difference does it may if one $25K donation is made from one donor or 100 $250 donations?  To me the giving circle is just away to collect a bunch of money, back out administrative costs and make another donation where more costs are going to be taken out. Personally, I’d rather give directly to the source if possible. Also, I think there’s a fair point that the whole things just feels icky to a lot of folks. But hey, do what you want with your money.[/quote]

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