When we donate money to one of the countless charities out there most of us conduct no such research we give it to an anonymous person over the phone internet or to a stranger with a cardboard on the street and we have absolutely no idea where that money goes? what it buys? who it helps?
How to know which charities are genuine?
Many countries including the US and UK it’s the law of medium to large charities to public their financial accounts and submit them to a governing body such as the UK’s Charity Commission. You can visit their websites and get a quick overview of the exact income and delineated expenditure of any large charity. You don’t have to be a professional accountant.
There are other nonprofits like Charity Navigator who keeps track of spending habits of charities as well as investigating how they’re run and exactly how there donations are spent. By them a charity is good if there 75% or more goes toward cause or their aid program. The most important question you really should be asking will my donation to this charity actually help the employees or the cause. Pouring money doesn’t automatically fix anything most of the times in fact sometimes it can make matters much much worse like a charity raise millions of dollars to make schools for poor kids in Africa but after few months there is no track how things are going are teachers even coming? Are students even learning anything all you see is a photograph of kids with school in backdrop smiling to camera as it will be proof of the work.
But in case your friend or any family member is raising money for some cause donating them is perfectly fine as long you trust them and their administrative skill that how they are going to handle the money.
Also you’re not sure which quality of products or goods these charities are using for example charity of feeding poor and homeless people is the food really edible? is it hygienic? and lot of other questions.
How charities destroyed local economies of Africa
Africa and Kenya alone imports more than 100,000 tons of clothes and other miscellaneous items from global charities each year how else could an overwhelming number of people roam the streets of Kenya or Zambia wearing I heart New York. In the 1980s 500,000 people were employed by Kenya’s textile industry today less than 20,000 largely this is because of immense influx of second-hand clothes flooding countries like Kenya has decreased the demand for local textiles putting hundreds of thousands of people out of work and having a hard time to continue to feed their families. Data collected from mordorintelligence.com
There has been reasonable charities that specialize in donating electronic goods such as laptops tablets and phones to African communities. Enabling Africans to communicate will empower them to unlock their economic destinies and get reliable well-paid jobs or perhaps start their own business.
Every market in almost every town and like the textiles that came before this huge used mobile phone trade constitutes a thriving business that employs millions across the continent and provides a sustainable income for many small business owners.
It is believed that it would be better for those charities to look at ways to use their donation funds to support the growth of these local businesses that buy sell and repair technology instead of flooding those markets with cheap overstock or refurbished goods that will do the exact opposite to the community and what was intended the same goes for food donations with the exception of post disaster relief. Local sellers won’t be profited and it will be disaster after disaster.
Charities without harming local business
If a region needs to help a foreign aid to improve its local services and infrastructure to empower local businesses then the charity should be focusing on those things.
Almost all forms of giving that involve the handing over of material goods and some services caused a dependency cycle where the recipients will begin to rely on that donated good or service to survive over time the community stopped producing those goods and services locally and the entire industries collapse.
Charities has to pay for there staff, web hosting to maintain the websites and payment systems staff and other staff. when you give this is one of the important things to keep in mind as the volunteers are not always going to step in as it is limited to earn volunteering hours for collage admissions. All these reason made charitable giving all time low.