Philanthropy: Three reasons why global giving is reaching its limits
Expensive, slow, and opaque: An industry that moves its money like non-profit organizations doesn't need any enemies, says Felix Oldenburg. Where does this inefficiency come from?
The American charitable organization has addressed the impact of extreme heat on women in the global south, attracting enough supporters to their cause. However, their funds must cross the border into the USA. With the US donation receipt, donors from Europe are unable to contribute. They are also deterred by threats from the Trump administration to freeze donations to organizations they deem "woke."
Consequently, the organization established a branch in the Netherlands, serving as a conduit for funds. This approach is common among large non-profit organizations, which often operate as empty shells to receive and redirect donations. It has been a practice for decades, with the extent of such organizations difficult to gauge.
In the United States, a single daughter of the Belgian King Baudouin Foundation manages over 500 European organizations' circles, eliminating the need for each to establish their own. For those seeking to avoid this intermediary process, they take advantage of intermediary foundations that issue domestic donation receipts and then forward the funds to a partner in the destination country. These networks typically retain around five percent.
Written by urgent.news from Handelsblatt's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
Also reported by 1 other outlet
- Philanthropy: Three reasons why global giving is reaching its limits handelsblatt.com
