JACKSONVILLE, Fla. — Every year, billions of dollars are donated to nonprofits across the country.
They are donations from people like Jacksonville resident Billie Tucker.
Action News Jax asked Tucker about how important it is to her to know how a charity is spending its money.
"Oh it's quite important,” Tucker said. “We don't want people misusing the great money that we give them."
The group Charity Watch recommends nonprofits use 75 percent or more of their funds on services.
A check of the watchdog group Charity Navigator found that seven of 31 charities in Jacksonville fall below that mark.
Among them is Wounded Warrior Project, which the site says uses just under 60 percent on services. The nonprofit disputes that rating.
In a statement, WWP said:
Wounded Warrior Project offers 20 direct programs and services that impact more than 100,000 wounded veterans, their families, and caregivers, all free of charge. The most recent, independent audit shows more than 80 percent (80.6 percent) of expenditures cover the costs of those programs and services.
Both the IRS and generally accepted accounting principles (GAAP) have a system charities are required to follow when they file their financials, whereas Charity Navigator uses a different system to come up with their numbers. WWP follows these standard and verified practices which show over 80% percent of expenditures went to deliver lifesaving programs and services to wounded veterans, their families, and caregivers."
The Ronald McDonald House was also rated below the 75 percent mark.
In a statement, Diane Boyle, executive director of Ronald McDonald House of Jacksonville said:
Ronald McDonald House Charities of Jacksonville is proud to provide a bridge to accessible health care and provide vital resources of lodging, meals, transportation and a community of compassionate care to families with children needing medical care at five area hospitals.
Core to our values is operating with accountability and transparency. In 2014, Ronald McDonald House Charities of Jacksonville embarked on a $13 million capital campaign to expand our Ronald McDonald House from 30 bedrooms to 54 bedrooms. Our capital campaign is in response to the growing need of families who need a place to stay during their child's medical crisis. In order to achieve our capital campaign goal, additional dollars were committed to fundraising and administrative costs. The administrative costs included a feasibility study, additional fundraising staff, and pre-construction related costs."
Charities like Step Up for Students and Dignity U Wear were listed as spending more than 95 percent on services.
"Understanding where the organization's funding comes from is a really good starting place but it's not where you should end,” CEO of Nonprofit Center of Northeast Florida Rena Coughlin said.
Coughlin said donors should consider the organization’s business model before making comparisons based on overhead costs alone.
The right number really depends on that organization's mission,” Coughlin said.
Coughlin said some charities use government contracts to provide things like health and education services and that could lead to more administrative costs.
Coughlin said larger multi-million dollar charities with long-term goals are likely to have more expenses than smaller nonprofits.
Coughlin said there are questions donors can ask to see if a charity falls in line with their expectations.
"What are the outcomes I expect?” Coughlin said. “Do they actually have the internal infrastructure to do what they're saying they're going to do?"
Coughlin said another important factor is transparency.
She said you should always be able to look at a charity’s finances and get a clear picture of spending.
It’s something Tucker agreed is key.
"These organizations need to realize they've got to run it pristinely because they don't want to lose their donors,” Tucker said.
See a list of Jacksonville charities and their expenses here.
Cox Media Group
