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Podcast: Where do our charity donations actually go?

Posted: 23 April 2020 8:32 am News

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Listen on Spotify Image: SuppliedListen on Apple Podcasts Image: SuppliedPocket Money podcast episode 205 How to make a good budget with Lisa Montgomery

Ever donated to a charity and wondered how your money is used? We chat about how donations are distributed, the role of charities and the most effective ways to donate.

Australians give a total of $9.9 billion to charities each year according to the most recent ACNC Australian Charities Report and we can only imagine that number will skyrocket in 2020 following this year's catastrophic bushfire season and COVID-19.

When you make a donation, you trust that the money is going where it's needed most, right? Well, it's not always that simple.

As we saw with the bushfire effort, surges in donations often present challenges for charity organisations that have the responsibility to distribute the funds. It can take months for the money to get where it's needed and it often gets tied up in necessary costs such as administration.

This question of "where is my money going?" has made headlines this year, but it's a valid and important question to ask every time you make a donation - whether it's to a well-known charity, Go Fund Me or a donation box at the supermarket.

We chatted to the Commissioner for the Australian Charities and Not-For-Profits Commission. Dr Gary Johns talks about where our donations go, what the responsibilities of registered charities are and what to look out for before you donate your time and money so you know it's going somewhere legit.

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