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Do Local Charities Deserve Your Money Or Trust?

While some charities spend as much as 99 percent of funds raised to help fulfill their mission statement, others funnel the same portion into administration costs, according to the Florida Department of Agriculture and Consumer Services.

Charity costs are generally split into three categories: program service expenses, which directly fund the mission statement; administrative expenses, which pay for utilities or employee salaries and benefits; and fundraising expenses, which can be used for telemarketing or fundraising events.

The Firefighter Burn Fund Inc. in Chiefland landed itself on the Tampa Bay Times list of worst charities in America in 2013.

The fund was created to supply burn victims with monetary support for medical care, food, medical supplies and equipment, according to the FDACS.

However, the company has spent nearly 81 percent of its almost $760,000 revenue on telemarketing.

President Cathy Simpkins earns about the same amount per year as is actually donated -- roughly $33,000 according to the 2012 990 nonprofit form. Simpkins has not responded to multiple calls and messages.

Because the solicitation of donations can be seen as a form of speech, the United States Supreme Court ruled no government entity has the power to limit the amount of money an organization spends on fundraising or administrative fees.  Organizations are not required to provide their financial information, such as specifying how money is being spent, to potential donors unless asked.

Some do so anyway.  The FDACS provides potential donors with a spending breakdown in its Gift Givers' Guide.

“We want to make sure consumers know how much money is actually going to the cause,” said Erin Gillespie, department spokesperson.

The Boys and Girls Club of Alachua County strives to make the most of its donors' dollars. Funds are used for programs it hopes will empower county youth to become responsible, productive and successful citizens.

“They’re either on the streets or they’re going to be somewhere safe inside our building,” said Laura Javidi, director of special events and development. "And that's where we want them."

The organization spends 94 cents of every dollar it receives toward the well-being of its children. Javidi said this is possible, in part, because the organization spends time to seek out donations of items the club would otherwise pay for.

“The dollars that we receive from sponsorships, from federal grants, from county grants, from city grants, from individual donors, all play a vital, vital role in maintaining what we have overall,” she said.

The Boys and Girls Club is not alone in its quest to spend a high portion of its funding toward its mission statement. Gainesville-based Ronald McDonald House Charities of North Central Florida, which provides a temporary home for families whose children are being treated at UF Health Shands Hospital, spends 76 percent of its funds on program services.

Melissa Tyrone, executive director of the Ronald McDonald House, said balance between the three expenses is hard to maintain, and some organizations have a more difficult time than others. She said her company is able to keep costs low by receiving donations and using volunteers instead of paying employees.

“The donor rarely expects you to spend anything more than 25 percent of (donations) on anything but taking care of the family that they asked for,"  she said. "So it’s really about honoring donor’s wishes.”

Ashlyn is a reporter for WUFT News and can be contacted by calling 352-392-6397 or emailing news@wuft.org.