Lending Club Blog

Knowing Where Your Charitable Contributions Go

In this season of giving, many people make charitable gifts. To ensure that your charitable contribution is as meaningful as possible, it’s important to know where your contribution actually goes.

In most cases, only a portion of your gift will go to the actual intended recipients or charitable purposes. All organizations have overhead and operating expenses, so it should come as no surprise that a portion of your donation goes towards these costs. What you may find alarming is the percentage of donations that go to these costs.

Gerri Willis of CNN urges donors to ensure that they only contribute to charities that use at least 75% of their budgets for their stated mission. The Better Business Bureau uses 65% as its standard when reviewing charities.

Some charities that claim to support Veterans were in the news recently when it was discovered that they give less than a third of their donations to charity.

In other cases, retailers may urge you to purchase items for which a portion of the sale goes to charity. This common practice has also faced increased scrutiny. The problem here is that it’s rarely disclosed what percentage of the sale will go to the charity. In some instances, the supported charities aren’t even aware they are part of these marketing campaigns.

Wherever you make contributions, you should have basic visibility into how the funds are being used. While you won’t necessarily get a detailed accounting of how your individual charitable contributions are used, we at Lending Club remind you that you should at least know the percentage of your donation that will actually be applied to the charitable cause. If you can’t easily determine this number from the provided literature, then your donation would likely be put to better use at an alternate charity.

Friday, December 28th, 2007 at 6:20 am

Comments (0)

Recommended

Welcome Home

Lending Club named #5 on Forbes’ Most Promising Companies List

Get ready for tax season with Lending Club’s Tax Form Guide

New Adjusted Return Metric

See more
Lending Club Awards
  • Archives z

Recent Posts

We’ve acquired a company!

Today we’re excited to share the news that we… Read More »
April 17, 2014

Lending Club customer information safe from Heartbleed Bug

You may be hearing about… Read More »
April 11, 2014

New: Loan Origination Data Update

An update for users of our platform statistics and… Read More »
April 3, 2014

Lending Club Launches Business Loans

Today, Lending Club announced the launch of business loans… Read More »
March 20, 2014

Lending Club Extends Privacy Protections for Borrowers

At Lending Club we pride… Read More »
March 19, 2014

How to Protect Yourself from Online Scams and Swindles

It is more important than… Read More »
February 11, 2014

New Statistics Charts to Help Investors Understand Returns

At Lending Club, we believe… Read More »
February 6, 2014

Welcome Home

I became a U.S. citizen earlier this month. When… Read More »
January 27, 2014

Lending Club named #5 on Forbes’ Most Promising Companies List

Lending Club has won the… Read More »
January 24, 2014

Get ready for tax season with Lending Club’s Tax Form Guide

Tax season is coming. To… Read More »
January 13, 2014