Fearing Scandal, Employers Take Tax Donation…
Appeared in the Christian Science Monitor
A dime here and there makes a big difference to charities.
Employers have long offered charitable donation programs that funneled money from an employee’s paycheck to a nonprofit. Along the way, middlemen who helped facilitate the transaction pocketed a small – but significant – portion. Those dimes add up to big money and big business. Some of the largest charities are, in essence, middlemen. Take the United Way. It funds countless nonprofits through these employer programs. Charities have long grumbled, but felt middlemen were a necessary part of fundraising. But that’s changing.
High profile scandals are causing many employers to rethink how the distribute donations. Some are demanding greater accountability while others are funding nonprofits directly. Union Bank and MGM Mirage are two firms that hope to shield themselves from problems by distributing donations directly to thousands of nonprofits. Technology has made the program management possible and many other firms are taking note.
Some experts say cutting out the middlemen is good news for donors who hope their dollar has the most impact. But others say nonprofit intermediaries offer reassurance and oversight that’s not possible with a self funded program. Click for more
