(Pictured:
An advertising campaign by
Stop the Traffik that received over 12 million views)
Many large organizations have advertisement campaigns so that people will be aware of their existence and perhaps be moved by them – and donate their money to keep that organization alive. Nonprofit organizations do work that helps people, but a prospective donator should be wary of where their money is going so that it ends up being spent responsibly. Donation money is better spent directly helping a cause, or it is better spent with caution, if one is going to give to a large organization: some nonprofit organizations focus their spending more on salaries and marketing rather than directly helping people with the donation money they are given.
Researching organizations is imperative – everything from web design to financial statements of an organization can tell how donation money is being spent. The video above shows that Stop the Traffik, a charity in the United Kingdom, has raised awareness about human trafficking. This is the organization’s purpose: it raises awareness of human trafficking. It describes itself as “acampaigning organisation that seeks to build a traffik-free world!” Furthermore,it has entire sections on its website dedicated to its advertising campaigns. This kind of research shows that Stop the Traffik does not directly help trafficked people - it explicitly calls itself a trafficking awareness organization, and its website is predominantly composed of the campaigns it created, not what it has done to help people who were trafficked directly. Researching a nonprofit’s financial statements also show how the company is spending donation money. Expense reports show the flow of money in and out of an organization, and they also show how exactly money is spent. The Invisible Children Charity is an awareness organization, also; their allocation of funds is mostly towards awareness kits, supplies, and marketing (over $13,000,000worth – that’s over 80% of their expenses). The charity spent over five million dollars to create the awareness kits – and in selling them, made a profit of over fifteen million. Furthermore, in one fiscal year, because of extensive campaigning, the expense of salary increased over $800,000. The financial statement, therefore, shows that Invisible Children do not directly help child soldiers in Uganda – their existence is based on making people want to help.
A person looking to donate should do research on the charities they donate before giving their money away to a cause. To help causes more directly, a person would be better off donating to a charity that does so instead of raising awareness of an issue, or directly supporting the issues themselves instead of using a charity. To support trafficking victims, for instance, a person would donate to organizations that help trafficking victims directly, such as James Kofi Anaan’s organization Challenging Heights that provideseducation and counseling, among other services, to children trafficked on LakeVolta in the fishing industry and also takes preventative measures to ensurethat children in the future are not trafficked themselves. Donating to organizations like these directly supports a cause rather than supports the awareness of it.
This is super interesting and I like how it ties into this weeks discussion. Did you find anything on people's motives for why they may or may not donate to certain campaigns? For example, I think a lot of people may be reluctant to donate to something like Challenging Heights, which while we know is legitimate, seems to be worlds away with no way for us to monitor progress. Yet, people blindly gave to Kony 2012 without doing research on what it was truly about. I'm really interested in seeing motives for giving (or not giving). Also, what did you find in terms of how to evaluate a charity? What resources exist for people trying to do their research before giving? Awesome post though!
ReplyDeleteI feel like some organizations that spend more money on advertising and less on actually helping who they say are going to help are often (unfortunately) the beneficiaries of donations just because people simply know that they exist, have seen there depressing commercials, or are in some other way "called to action".
ReplyDeleteAlso, it is awesome that we are learning about financial statements in business class right now! Way to kill to birds with one stone, Amanda!
Great job, Amanda! Financial statements are really great in showing how a company/organization spends money and if they are a healthy organization. I think the only slight issue is that most people do not know how to read a financial statement. It's nothing YouTube or Google can't solve for most, but will others really take the time to read through them? They can be long and boring, but Iguess if you want to make sure of the organization, you'll figure it out. Also, what about the small organizations that may not post their financial statements?
ReplyDeleteI think it's important to highlight that organizations geared towards spreading awareness of an issue are not bad, and actually serve a crucial purpose. You could also make the argument that by contributing to spreading awareness, you are in fact making a donation to the cause, it is just more indirect. I do like your point about really understanding what efforts you are donating to.
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