Charity and philanthropy are major concepts that often feel out of reach to the average person. While the everyday consumer may make a donation here and there, substantial contributions are typically reserved for the wealthy and famous. As a result, there are many misconceptions about philanthropy that could stop people from being as actively contributive as they may like to be.

All Charities Help the Poor and Needy

Although people donate with the intention of helping people in need, the U.S. charity industry is a thriving business that benefits many people who are not in crisis. Each year, American charities earn over $1.5 trillion dollars. Although money does go toward its designated cause, it is not granted to the recipients in its entirety.

Consider hospitals, the largest sector of charitable contributions in the United States. While some donations go to improving general healthcare, much more is reserved for installing luxury upgrades and services that benefit guests and staff more than patients.

The truth is that many organizations are run as a charity without doing much good at all. The Internal Revenue Service approves 99.5 percent of all charity applications, which is why there are many popular groups that are earning tax-free income without making any generous contributions. These organizations include the U.S. Golf Association, Renegade Roller Derby team in Bend, Oregon, and the All Colorado Beer Festival.

It’s important to extensively research the organization behind any donation. Any group that is worth donating too will have a viable track records with tangible results.

All Money Goes to Support the Cause

Whether someone donates $10 or $10,000, they want all of their contribution to go directly to the cause. Unfortunately, not all charity organizations reduce overhead costs to give recipients as much financial support and resources as possible.

Any organization will have expenses, so it’s a mere logistic that some money from donations has to go toward the general operation of the group. However, some charities contribute as little as 15 percent of their total income to their cause.

Tax Breaks Motivate Wealthy Donors

Research shows that those with the lowest incomes actually donate the greatest percentage of their income to charitable causes. Most low-income donors rarely itemize their deductions, and they have far less disposable income than their wealthy counterparts.

Although there is a definitive increase in charitable donations before the year’s end, most Americans simply give because they want to help others, and charities may be the easiest way they can do so.

The Importance of Activism

Anyone who wishes to donate to a charitable organization should first research the group extensively. When they are unable to find any proof of how past donations have been used to benefit a cause, they should find means to contribute directly to those in need as well as offer other services.

Donation does not always have to be monetary; time, labor and resources can be just as meaningful in people’s lives.      

This article was originally published on YoussefKabbaj.org