If you usually hear that “All proceeds go to charity,” what do you think? Does it provide you a warm and fuzzy feeling?
Two questions come to mind: How do you define proceeds? And how do you define charity?
Regarding the proceeds, can I see the not-for-profit organization’s balance sheet? Sales minus expenses equals profits. Is proceeds the same thing as profits?
For some for-profit organizations, you hear a portion of the profits will go to charity. Again, perhaps knowing some of the profits will go to charity might make you feel good and encouraged but what if you dig deeper. Could we please quantify the percentage and amount of the portion of the profits given to charity?
When a not-for-profit organizations talks about how much money is raised for charity, how well run are these walks or charitable events? In terms of the money raised for charity, how much of that money is applied to administrative expenses and how much actually is used for charity purposes?
If people participate in such events to earn money for various charities, should we ask similar questions? Do you? Should we care?