Non-Profits Getting Swindled
This isn’t our typical topic, but since we do often talk about donors needing to be informed so that they’re money isn’t used in correctly, we figured it’d be interesting to discuss what happens when a charity’s money is taken advantage of.
DiabetesMine ran a report today about how Insulin Pumpers, a non-profit that has been around since 1997, lost quite a bit of money when they signed up for a donor database service that didn’t really provide them any value. When they tried to cancel their membership and get their money back, they wound up having serious problems.
This is a problem in all non-profit industries. While we are funded by our founder, very few other non-profits are afforded the same luxury, and must constantly bring in a new influx of donors. Occasionally you pay for a headhunting service or a database service to find donors who may be agreeable to your cause that you can try and get donations from. Of course, this is where things can go wrong. While this isn’t the case where the charity was outright swindled, oftentimes the contracts and laws are biased towards the service company in unfair ways.
I encourage you to read the full article to see exactly what happened to Insulin Pumpers, but what happened to them has happened to others. While we do spend a lot of time talking about the importance of informed donors, we rarely take a minute to speak about when good charities get short-changed by other companies, and how that impacts them.
Until Next Time