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How do charitable foundations earn

We all often see various advertisements of organizations involved in helping people with disabilities, orphans and animals. On the streets, promoters handed out leaflets calling for help to tidy up the dying nature, in the subway cars posters with the texts “Let’s save children with rare diseases” flicker. It so happened in our society that most people do not trust charitable foundations or simply do not believe in their honest activities.

We will not analyze why such stereotypes arose, although this is already obvious – there are really many scammers among such companies, so people simply don’t believe in them. We have already written about how charitable foundations are created. Today we’ll talk about how they earn. After all, such organizations are also business, although it bears the title of “non-commercial activity”.

How do charitable foundations earn
Charitable organizations are companies with the status of a legal entity that carry out non-profit activities. According to the law, such funds are required to spend 70-80% of all funds received from free donations for their main non-commercial purpose – in fact, helping those in need, restoring historic buildings, improving the environment and so on. Charity has many directions. The remaining 20-30% (the figure is inaccurate, since this percentage can vary in different countries), the organization has the right to spend on itself. That is, for the wages of employees, for the maintenance of the office, for advertising needs and so on. It turns out that the more the company receives donations, the larger the amount it can take for itself. And it is absolutely in her interests to attract as much money from the population as possible.

Serious amounts are in circulation of large charitable foundations that solve various social problems and which are successfully helped by successful businessmen. And the employees of such organizations can receive quite good salaries, not to mention the founders and leaders. Sometimes they use various 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
One way to get money from unsuspecting people is through regular payment receipts. Rather, they are only seemingly ordinary, but in reality with a “surprise”. Leaflets are printed that are as similar as possible to utility bills — in size, font, text location, paper type, etc. The amount indicated is not at all significant – up to about 80-100 Russian rubles. Details for the payment, of course, of the charity fund. In order not to violate the law, it says “it is not necessary to pay” on the receipt. Naturally, in the smallest font. It is not advisable to indicate the time frame for payment. Of course, there are many people who want to study this receipt in detail, and find out that this is just a trick of the company, and it is not necessary to run to the cash desk with this piece of paper. But there are those who take a cursory glance at the appearance of the receipt and the amount indicated in it, and thoughtlessly go to pay supposedly for “utilities.” And this money will go directly to the stock account.

Whether such a method is fraud is a moot point. Even if the fund follows all the “rules” by which they supposedly do not violate the law, we all understand that such a method of raising funds is not transparently honest. Another thing is when residents of the city are given out or sent by mail with a request to donate an arbitrary amount to a charity. Payment details are also indicated, but you can enter any amount you want. The payer of such a receipt is not mistaken and clearly understands that his money will go to the account of a charitable organization and that he has the right to simply ignore this piece of paper and there will be nothing for him. This way of attracting money is the most honest, it is only a pity that most people who receive such a receipt simply throw it in the bin.

Another weak point of aid organizations is “kickbacks”. For example, the foundation decided to help the shelter or nursing home in the purchase of any equipment or furniture. These products are bought at a higher price than stated publicly, and the difference is simply returned by the supplier or seller of the charitable company in an envelope.

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