Common Myths and Misconceptions about NGO Donations

Debunking common myths about NGO donations

  • Feb 07, 2023
  • - by Annamrita

Mother Teresa said; it’s not how much we give, but how much love we put into giving. Serving the needy will give you an unmatchable experience that you never had before. Consider donating a few bucks of your earnings to an underprivileged or needful and see how he/she will bless you with all his heart. Still, many out there don’t believe in donating and consider it as another scam. Today, we have more accurate data about nonprofits than ever. You can find everything you need to know and even more.

From donating an amount to an NGO to the usage of your money for welfare, you can track everything (thanks to technology). Still, there are many minds that are doubtful and raise questions. While the non-profits and charities work hard to resolve all the queries, there is still some misunderstanding about how they typically operate, whether they are profitable, and what causes they support.

A series of studies discovered that when a person chooses to donate money, neurons in the part of the brain associated with a sense of satisfaction begin firing.

7 Common Myths About NGO Donations – Are They Really True?

A single donor is not enough to make a big difference.

FACT – If a donor donates effectively, they can make a significant difference. Your charitable contributions, no matter how small, are critical to the survival of local nonprofits. Having a diverse set of donors and funding sources gives a nonprofit credibility and stability in the eyes of other NGO donors.

Charitable organizations will not use the donations for the right purpose.

FACT – Might be, some charities use your donations more effectively than others, but all are legally required to use your contributions in accordance with their missions and goals. If you want your donation dollars to go toward specific causes or programs, make sure you ask all the necessary questions before making the NGO donation. If an NGO or charity is not comfortable disclosing its financial practices or avoids answering questions from donors, it may be best to donate elsewhere.

Nonprofits are frauds/scams.

FACT – Scams, misappropriation of funds, and other stories of immorality are some of the main reasons why people don’t believe in donations. However, the reality is – not all NGOs and charities are frauds. Evaluate properly two to three options that you have in mind, speak with nonprofit staff, conduct your own research, or become more involved as a volunteer to gain confidence before giving. If you want to donate online to NGO, do it once you are fully sure.

NGOs and nonprofits overspend on their CEOs and overall administration.

FACT – Yes, some organizations pay more for executive salaries and operating expenses. These, however, are the exception rather than the rule. As an example, NGOs like Annamrita Foundation are in collaboration with the government to serve healthy, home-cooked meals to an unprivileged section of society; aiming towards the goal of zero hunger. You can connect to the right NGO for food donation to ensure that your hard-earned money goes in the right direction. 

It is preferable to directly donate to the needy/poor rather than donate to NGOs.

FACT – If you know someone who is in desperate need and are in a position to assist that person, then make sure you do that. Some people also believe that giving to beggars is better than donating to an NGO. But, are you sure that the beggars will spend that money on the right cause? Chances are higher that he might spend the money on alcohol and then beat up his wife in his drunken stupor. On the other hand, NGOs invest a significant amount of time in selecting the beneficiary and ensuring proper utilization of funds.

Non-governmental organizations (NGOs) make zero to no difference in the welfare of society.

FACT – NGOs spend a significant amount of time (and money) collecting and analyzing data to demonstrate impact but the reality is – it takes time to see the change. Sometimes you just have to take a chance and donate to programs you don’t fully understand.

Larger NGOs might not require fundraising.

FACT – Any NGO that raises funds does so because there is a disparity between expenses and donations. While it may be tempting to support an NGO that you believe “needs” your money more. Do not fall into the trap of assuming that larger NGOs will not value your contribution. Because of economies of scale, the impact of your donation is often much greater in larger organizations. 

Let’s work together to make our society a better place!

It takes so little to do good deeds. Questions and misconceptions will always be there in many minds. All you need is to be a little conscious while selecting the right NGO to donate money. Start donating today with all your heart. Let’s make doing good for others a habit!