Organizations that help poor people: Are they Efficient?
Poor people have been around since the beginning of time. At times, you might wonder why some people tend to prefer to be poor. That is a state of the mind that cannot be explained rationally without losing your mind. That said, organizations that help poor people try to alleviate the effects of poverty on the less fortunate. Most of these organizations or charities are not efficient. That is because more than half of the donations they receive go into administrative cost. It is also amazing to find out that some of the heads of charitable organizations actually earn more than some CEOs. If you are supposed to be running a charitable organization that help poor people, you will expect that up to 70% of the donations will go to those in needs.
Nevertheless, not all organizations that help poor people are badly managed. The bigger the organization, the higher the overhead and the less efficient it will be. Some organizations are actually used by some rich people to launder money and hide from paying taxes. In the Bible, you are encouraged to pay taxes because Jesus said, give Caesars things to Caesar and the Lord’s things to the Lord. It is not only the rich and fortunate who hate the idea of paying taxes. There are so many people with low income who feel they have a right to avoid paying taxes. That said, the most important thing is that there are organizations and people who are willing to help the poor but they are not all Saints. The services they provide to the poor is better than doing nothing.
Organizations that help poor people like the Red Cross, Save the Children, Salvation Army and others are started to rectify some of the problem in society. The problem is that those financing these charities are also those who contribute to creating the problem of poverty. That is simply the way things are. There are a lot of people who are now disillusioned because of the mismanagement of the resources available to the poor. A 20/80 percentage will be great where 20% is for administration and 80% goes to those in need. The reality is different and that is why most NGOs are not that efficient because they are often run like for profit organizations.