Monday, December 17, 2007

ROI for Charities?

What is the answer to the problem of a lack of accountability of charitable organizations. This time of year, generous Americans will give millions of dollars to charitable organizations, often with little understanding of how the money will actually end up being used.

Some charities spend virtually all of the money raised on further fundraising. Others line the pockets of ministry founders.

Ideally, charities that do not make good use of donors' money would go out of business when the word got out and people stopped giving, but even people who give large amounts of money to charity often do not research these organizations. This is unfortunately especially true when a charismatic ministry leader garners support for supposedly spiritual causes.

For a further discussion of the problem, along with a link to a document lauding 30 Christian ministries meeting specified accountability standards, see here.

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