How do we know that donation money end up where they are supposed to?

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With so many corporations and apps now asking donation for various causes. How are they allowed to operate and who checks they are legit and not scams?

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4 Answers

Anonymous 0 Comments

**You never can be sure** unless you are part of the board of directors of the charity that you give to.

There are charity watch groups that publish results of their investigations about which ones are good or bad (by their criteria).

Many charities publish data about their finances annually in the form of an “Annual Report” or to their federal tax authority.

For example, in Canada, their [tax people have a list or registered charities](https://apps.cra-arc.gc.ca/ebci/hacc/srch/pub/dsplyBscSrch?request_locale=en)

One charity that I support is called [Harvest House Atlantic](https://apps.cra-arc.gc.ca/ebci/hacc/srch/pub/dsplyRprtngPrd?q.srchNmFltr=harvest+house+atlantic&q.stts=0007&selectedCharityBn=872293972RR0001&dsrdPg=1).

I can ;look at their [T3010 Registered Charity Information Return – Schedule 6 – Detailed financial information](https://apps.cra-arc.gc.ca/ebci/hacc/srch/pub/t3010/v25/t3010Schdl6_dsplyovrvw)

This shows that they took in (in 2020) just over $700K for which they gave tax receipts.

Total eligible amount of all gifts for which the charity issued tax receipts

$709,610.00

The spent most of their cash income on salaries for the various workers with their housing the homeless, feeding the homeless, drug & alcohol rehab and other programs.

The had income from their housing programs, and mortgage and building expenses. They also had vehicle and program expenses.

I have several other charities I give big to. I don’t like giving to things that I can’t be bothered doing the work to know if they are well managed.

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