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America’s Worst Charitable Offenders

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from Mainstreet via USA Today:

The 20 Worst Charities in America

A favorite saying in business is that you have to spend money to make money. Charitable organizations, on the other hand, have to spend money to give money, and it turns out that some are woefully inefficient at channeling donations to the people they’re supposed to help.

… Whether it be rent on prime office space, generous pay and benefits for the board of directors, or the high fixed costs of running a summer camp, overhead like this reduces the impact of a charity no matter how that money is being spent. Donor beware…

14. American Friends of the Open University of Israel (AFOUI)

Administrative expenses: 45.2%

The Open University of Israel, which runs 70 study centers and over 600 online courses, is the largest university in Israel and serves Israelis and Jews around the world. Based in New York, the American Friends of the Open University of Israel is an advocacy group that supports Israeli communities in the United States and raises awareness of the contributions of the Jewish community in American society. The group raises funds for scholarships, research centers, and other educational goals, but its high administrative expenses in its last reported fiscal year have stood in the way of maximizing the group’s reach. Having received higher marks in the past, the AFOUI will surely take steps to more efficiently manage its budget of around $4 million.

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  1. Thanks for posting about the worst charities. It’s all too easy to look at 990 forms. This is the only info we have for MOST charities. I wrote about overhead expenses, and why these are not the best numbers to look at for nonprofits, here: http://www.wildwomanfundraising.com/overhead-head-money/

    I looked at the source article, and these seem to be the only numbers they use to judge a charity. Which is really wrong. ALL costs are operating costs. Whether it’s a project or a lightbulb, all are necessary to keep the nonprofit running.

    What I would like to see is some ACTUAL investigative journalism here. Your teaser headline was nice, but seriously now.

    Find out which nonprofits are REALLY having an impact on the causes they purport to solve. Talk to people they’ve served. In the case of the Audobon society, go look at the lands they’ve been protecting.

    Find out which ones have the highest rates of turnover (Which will clue you in as to whether the nonprofits have good leadership or not). Why not give us something worth reading?

    So, that’s my assignment for you.

    Go.

    Mazarine