I had a discussion on the weekend in which the name of particular regional music artist was mentioned in reference to the issue of high-profile charities having an outrageous percentage of their income going to fundraising and administration.
It was in some respects a continuation of a conversation we’d had in the summer concerning another singer who is largely in the same situation, but I’ll write the next paragraph as though it applies to the one, though it applies to many, many more than this, and possibly quite a few where you live if you’re in Canada or the U.S.
This artist has never written a popular song. Never had a hit album. Never toured much except in connection with the charity. Has only done television with ministries which tend to also invite (and perhaps only invite) musicians who do this same charity circuit.
But apparently he is able to make a comfortable living doing this. Heck, my wife and I, who have much more realistic expectations — we still have the same sofa set in our living room after 32+ years, sitting on the same worn-out carpeting — would have really appreciated the same level of performance and income opportunities back in the day.
This pastor said there is an army of people who either speak or sing who can earn $100 for just a passing mention of a certain charity.
“Can I mention [name of charity]?” he was asked.
His answer was skillful.
“Certainly, as long as you tell people you’re being paid to mention them.”
We looked at this issue before in terms of the commissions paid to these musicians for setting up a child sponsorship booth in the lobby outside their full concerts. It was the similar to the deal that Family Christian Stores had, as outlined in a 2015 article in the Detroit Free Press:
Family Christian has also benefited from customers who sign up to sponsor a third-party group called World Vision, which provides food, clothing and shelter to impoverished children throughout the world.
The chain solicits sponsorships from its customers and receives a $150 fee from World Vision for each customer who signs up and pays the monthly fee, according to records obtained by the Free Press. Family Christian receives another $35 if the customer signs up for automatic payments.
That prompted me to do some math:
The sponsor is paying World Vision $35 per month per child. That means that for the first 5.28 months, the organization has yet to break even. It’s really into the 6th month that the sponsor’s donation is free and clear, but of course there are also overhead costs in that $35 that we don’t know.
The person I spoke with yesterday had different, perhaps older numbers in terms of the monthly donation, but shocking in terms of what happens beyond the artist being paid a bounty for each sponsorship brought in.
“Out of a $22 monthly fee;” he told me, “The child is seeing about $1.”
He also told me stories of being on a board for one such organization which thought nothing of flying everyone first class to Europe, staying in five star hotels, and eating at the most luxurious restaurants. When his eyes were opened, he quickly resigned. It’s seems almost sinful. No, delete the word ‘almost,’ there is a definite corruption associated with this, which only multiplies when you consider the socioeconomic level of some who are giving quite sacrificially.
If people only knew…
…I want to end this with something redemptive.
The context of our conversation wasn’t, ‘Let’s bash some major charities,’ but was about what I call the second tier of Christian organizations available to support. (Our recent series on four of Canada’s best charity secrets contained two which are able to issue receipts, and of the others, the orphanage is in such dire need I would hope some in the U.S. would want to give irrespective of tax advantages.)
These organizations are easily located by asking someone ‘in the know’ if they can help you find people who are doing effective ministry, either on the domestic front or overseas, who don’t have a lot of profile.
Your money doesn’t have to be squandered on opulent offices, insane overhead costs, and commissions to concert artists.
It can be given to meet real needs. One of the organizations I profiled has its entire staff working in a corner of another charity at second-hand workstations sitting on used office chairs. Another is based in someone’s house in middle class suburbia.
I have no less confidence in them because they don’t appear successful. Success in feeding and clothing and housing the poor has a much different metric.
Give wisely.
In an article from October, 2015, we looked at three indicators that can be warning signs of a charity which has grown too fat:
I’m not sure that people in the Early Church or especially the Persecuted Church would worry about the “Too Low” category; they would rejoice that you had a location to work from; that you had some paid staff. But that’s what I wrote at the time.
I attended a fund-raising event a week ago which had the same familiar-looking child pictures and profiles spread out on a table, but instead, they were asking you to take one and pray for the child in question.
How refreshing.
Can’t take the time to investigate which organizations would fit comfortably into that second-tier category I mentioned? There are foundations out there which exist to support these charities. They’ve already done due diligence. I have contact info for one in Canada, and I’m sure there are many in the U.S. I hope to write about this at some point in the future.
Here in Canada organizations must file a tax return for the organization. These are public and are posted online. In the U.S., some organizations are incorporated as “churches” and the same level of transparency is not required. While having these details doesn’t tell the whole story, it will give you an idea of the scope of the organization.
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