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How do charitable funds earn

We all often see various advertisements for charitable foundations and organizations: on the streets, promoters hand out leaflets calling for help to tidy away the fading nature, posters with texts “let’s save children with rare diseases” flash in the subway cars. It so happened in our society that most people do not trust charitable organizations or simply do not believe in their honest activities.

We will not analyze why such stereotypes have arisen, although it’s already obvious – there are indeed a lot of scam artists among charity companies, so people don’t believe in them anymore. We have already written about how charitable foundations are created, today we will talk about how they earn. After all, such organizations are also a business, although it bears the title of “non-commercial activity.”

Charitable organizations are companies with the status of a legal entity that carry out non-commercial activities. Namely – a charity. According to the law, 70-80% of all funds received from free donations, the charitable foundation is obliged to spend on its main non-commercial goal – in fact, help the needy, the restoration of historic buildings, environmental improvement, and so on. Charity directions have a lot. The remaining 20-30% (the figure is inaccurate, as this percentage may be different in different countries) a charitable organization has the right to spend on itself. That is, on the salary of employees, on the maintenance of the office, on advertising needs, and so on. It turns out that the more an organization can receive donations, the greater the amount it can pick up. And it is absolutely in her interest to attract as much money as possible from the population.

In the back of large charitable foundations that really solve various social problems and which successful businessmen periodically help, there are serious sums of money. And employees of organizations of such a plan can receive quite good salaries, not to mention the founders and managers. Charitable funds often go to various kinds of tricks to get as many donations as possible. This is either outright fraud, or tricks that mislead people, but in fact do not violate the law.

Ways to raise funds by charitable foundations

One of the most common ways to get money from unsuspecting people is through ordinary payment receipts. Rather, they are only seemingly ordinary, but in fact with a “surprise”. Printed papers, most similar to the receipt of payment of utilities – in size, font, text layout, type of paper, etc. The amount indicated is not significant at all – up to about 80-100 Russian rubles. Details for payment, of course, a charitable foundation. In order not to violate the law, it is written on the receipt “it is not necessary to pay”. Naturally, the smallest font. The time frame for payment is not desirable. Of course, there are quite a few people who want to study this receipt in detail, and find out that this is just a trick of a charitable foundation and it’s not necessary to run with this piece of paper to the cashier. But there will be those who take a cursory glance at the appearance of the receipt and the amount specified in it, and will thoughtlessly pay allegedly for “utilities”. And these money will go straight to the account of a charitable foundation.

Whether such a method is a fraud is a moot point. Even if the foundation observes all the “rules” by which they allegedly do not violate the law, we all understand that this method of raising funds is not transparently fair. Another thing is when residents of the city are distributed or are sent by mail with papers asking to donate an arbitrary amount of money to a charitable purpose. The details of the payment are also indicated, but a person can enter any amount he wants. The payer of such a receipt is not in error and clearly understands that his money will go to the charity’s account and that he has the right to just ignore this piece of paper and he will have nothing for it. This way of attracting money is the most honest, it’s a pity that most people who receive such a receipt simply throw it into the urn.

Another frequent affliction of charitable organizations is “kickbacks”. For example, a charitable foundation decided to help an orphanage or a nursing home with the purchase of some kind of equipment or furniture. These goods are purchased at a price higher than those declared publicly, and the difference is simply returned by the supplier or seller to a charitable foundation in an envelope.

The most common charitable funds now are to raise money for the treatment of people with serious illnesses. But diseases are incurable. If you indicate that this patient has an incurable disease or is already in such a neglected state that he has no chance of salvation (alas, but it happens), it is unlikely that many people will want to donate money for his treatment.

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