Disaster donations

9 years ago

We live, and I grew up, somewhat near the area where the twin tornados went through Nebraska. As usual, many donation methods are being set up. One that's going around on FB uses an online facilitator site and the fund description says " All donations to this fund will go to those who are in need". There is a goal of $100,000.

However if you go to the Q&A section of the facilitator site, it states "we will deduct a 5% fee from each donation ......... A small processing fee of about 3% will also be deducted from each donation." That's nearly 8% of each donation going to the facilitator site. On a $100,000 goal that's $8,000 going elsewhere. At first I wanted to encourage people to give locally instead of through the site that keeps a portion of the funds; however I stopped, because I wondered whether people would just not give or have doubts about giving thru any method. Even sites such as Red Cross and others keep a certain percent for administrative fees. So should the 8% just be considered a cost of giving a donation? Should they have said "all donations to this fund will go to those in need" when that's not true. What are your thoughts?

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Comments (4)

mtnrdredux_gw
9 years ago
Hilltop,

Charities need money to run. Eight percent is low (i would guess the first 3% is an interchange fee for the credit card companies, for example).

See this from a CNN article on the same question:
"To get the biggest bang for the buck, CharityWatch advises, consumers should donate to charities that use at least 75% of donations for direct aid. The Red Cross, at 91%, is well above that mark."
hilltop_gw
Original Author
9 years ago
OK, that's what I needed to hear. I'll just accept the fee as a cost of giving.

My initial instinct was to encourage others to get the most bang for their buck by giving to the fundraisers at local banks where 100% would go towards the project; however not everyone would even consider that.
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mtnrdredux_gw
9 years ago
I don't know about no-cost fundraisers at banks, I guess it's a local reaction. Why won't people do that?
User
9 years ago
The Red Cross is always there and doesn't wait for a disaster to remember people are in need. A donation to the Red Cross is the best bang for your charity buck. I never give to groups put together hastily after a natural disaster, nor do I give to Facebook groups. They may have certain standards of administrative costs regarded as goals but are not mandated or enforced.