People have many reasons to ask these questions. It is a fact that even in most of the big and well known charities today, most of the money doesn’t get to the cause.
The reason for this is because all big and well meaning charity organizations must spend most of the money towards administrative costs in order for anything to reach the end user. Every organization has to hire qualified people, where many of them have to travel a lot and the salary is often high. All these expenditures have to be deducted from what is donated to the organization.
In addition to this, corruption works like a cancer from within and most of the money is lost in more than one way in needy countries. Having said that, charity workers are normally not business minded having sustainability in what they do, even though they like to think so.
To prove this, let us ask two simple questions;
- What if all donors stop giving money to a charity today?
- What will happen to that organization tomorrow?
The answer is;
- It will go bankrupt or have to shut down.
The reason being;
- There is no sustainability in any charity organization, since it’s solely based on donors funding.
If charity was based on profitable and sustainable business ventures, which could give back profit to the donors as a sort of return on investment (ROI), the charity itself would quickly become sustainable. This has proven to be the case in some microfinance banking, where it is well known for success rates of more than 97 percent.
NEW: Better Globe has created another holistic way which we have called;