Quote:
Originally Posted by BTM
There are plenty of charities who use money prudently, but you're correct, when you donate, you're consenting for the charity to use the money how they deem fit. Which makes sense, because it's their money - you gave it to them. There are expenses to running a charity above and beyond what the end "beneficiary" of the charity will receive - administration, promotion, advertising/sponsorship, etc are all real and necessary expenses, without which, the end beneficiary likely will not receive anything.
How prudently these expenses are managed, is a whole different thing, and I'm not aware that charitable foundations have public books. In the end, use your best judgement, and get a receipt for your tax deduction.
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In lay man's terms, it is a great way to hide money. It is a great way to make money. Many wealthy people were made by their charities. However, many wealthy people also start charities.
Now that I think of it... I am going to start an NPO.