Meet the Journalist
Nicholas D. Kristof is a two-time Pulitzer Prize winner who currently writes op-ed columns that appear twice a week for the New York Times. Viewed by many as a leader in web journalism, Kristoff was the first blogger on the New York Times website. To learn more about or to connect with him consider reading his blog, following him on Twitter, liking him on Facebook, or viewing his channel on YouTube.
Year End Giving
Kristoff’s most recent article, “When Donations Go Astray“, explores the need for those who seek to engage in charitable giving to research how the monies they donate will be utilized prior to making a contribution. As you prepare to make year end gifts, consider not only the mission of the charitable organization but also the percentage of each dollar given that will be used for administrative costs. If you are not convinced it is worth the effort to do research before giving, consider this analysis:
Some well-meaning Christians will support Feed the Children, a major Oklahoma-based Christian charity that describes its mission as providing food and medicine to needy children at home and abroad. By some accounts it is the seventh-largest charity in America.
But the American Institute of Philanthropy, a watchdog group that also runs Charitywatch.org, lists Feed the Children as “the most outrageous charity in America.” The institute says that Feed the Children spends just 21 percent of its cash budget on programs for the needy — but spends about $55 to raise each $100 in cash contributions.
So What?
Kristoff does not want to diminish giving, but rather to ensure that donors feel good about how their money is spent: “donations could accomplish far more if people thought through their philanthropy, did more research, and made fewer, bigger contributions instead of many small ones that are expensive to handle.”
He suggests potential donors spend a few minutes doing online research using the following resources:
Questions for Donors
- Do you give a larger gift to a few organizations or smaller gifts to a greater number? If you knew by giving larger amounts to fewer groups that a higher percentage of each dollar could be used for the primary mission of each entity, would you consider changing your giving habits?
- Do you tend to trust organizations that have been around for a long time and/or those with familiar names or do you scrutinize all charities equally?
- While low administrative costs allow a greater percentage of funds to go to the primary intended recipient, they cannot provide any assurance the monies used for those purposes are leveraged in a highly effective manner. When evaluating a charity, how do you balance the easily measured administrative costs with the less easily measured missional impact/effectiveness?
Questions for Churches
- How do you educate those responsible for allocating the congregation’s mission dollars (the giving from church funds to other non-profit organizations)? Do you have any written guidelines that prohibit giving to entities with excessive administrative costs?
- Do you compare the percentage of your congregation’s annual budget needed to cover administrative costs to those of other churches in your denomination or to other churches with similar numbers of parishioners? How do you seek to minimize these costs without sacrificing missional effectiveness?