In a perfect world, there would be no need for government welfare because charity would replace that function. Welfare is notoriously ineffective in actually providing aid to the poor.
According to Robert L. Woodson, “70 cents of each dollar budgeted for government assistance goes not to the poor, but to the members of the welfare bureaucracy and others serving the poor,” and the Cato Institute’s Michael Tanner has found evidence to support the same figures.
In contrast, private charities on average spend at least 75% of the budgets on the programs and services they exist to provide.
There’s no doubt that private charity is more efficient than government, but that doesn’t mean that there aren’t bad charities. In fact, some of the bad charities have great name recognition, which legitimizes the charity to prospective donors.
As cited from Right Wing News, here are the top ten worst charities ranked, as measured by the percentage of the money they raise that actually is used as aid:
Obviously charities need to pay for overhead, but as was previously mentioned, the vast majority are paying out over 75% of the money they bring in as aid.
So where is the money going? In most cases, to either fat salaries or for-profit solicitation firms that these charities employ to garner donations (those firms take a cut of all donations).
Most charities aren’t like this, but it’s always good to make sure the ones you donate to aren’t on this list.