Charity

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Donating to charity is not the best way to make a difference. Charities can differ massively in their efficiency based on two main metrics:

  • Program % reflects the percent of total expenses a charity spent on its programs in the year analyzed. For example, a Program % of 80% means that the charity spent 80% of its expenses on charitable programs. The remaining 20% was spent on overhead, which includes fundraising, and management & general.
  • Cost to Raise $100 reflects how much it cost the charity to bring in each $100 of cash donations from the public in the year analyzed. For example, a Cost to Raise $100 of $20 means that the charity spent $20 on fundraising for each $100 of cash donations it received.

Ineffective action

Charities hold special status with the government. As such the recieve certain benefits like tax exemption status the government. This often limits them from doing anything drastic as the majority of donations to charities are tax deductible. i.e. if a charity steps out of line it may lose its status and therefore its main donors.

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