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What do charities do with donations?
charity
Charitable groups spend donations in many different ways with the goal of ensuring such contributions make a notable impact.

People donate to charity with the expectation that their donations will be used to provide support to those in need or inspire social change. Donations can make a big impact, but many people question exactly what happens to those funds once they reach a nonprofit group. It makes sense to want to know how charities spend money, and the following are some ways that charities put donations to good use.

Fund programs

Charities, first and foremost, use donations as a way to spearhead specific programs and initiatives. These programs can involve funding health services, such as researching medical conditions and trying to find cures. Education-based charities may use funds to provide scholarships or purchase books and other educational materials for students. Charities addressing poverty may use funds to provide food, shelter and job training.

Operate the nonprofit organization

Although it would be preferential if all charitable donations went toward helping the people who need assistance, operating a nonprofit incurs many of the same costs as for-profit entities. Therefore, a portion of donations is often earmarked for the operational costs of running the charity. According to Benevity, a resource for running and funding nonprofits, charitable groups that say 100 percent of donations go to the charity are perpetuating a myth.

Operational expenses can include staff salaries; office expenses like rent, utilities and supplies; continuing education and training for volunteers; and also community outreach programs.

Marketing and advocacy

In order to do the greatest good, organizations have to raise awareness about their missions and programs. This can include investing time and money into campaigns to educate the public, attract new donors and mobilize volunteers. In addition, donations help support lobbying efforts to promote governmental policy changes.

Provide emergency relief

Charitable groups that step in when natural disasters, humanitarian crises or health emergencies arise will need to mobilize quickly to provide relief services. Donations to these groups often are directed to these efforts. Immediate help may come from food and medical supplies, while long-term intervention can include funding the efforts of rebuilding teams.