Most people consider unregistered charities to be nothing more than scams. Having looked at the requirements for becoming a registered charity I have to disagree.
The IRS puts a LOT of restrictions on a registered charity. I wanted to open a charity to help support orphanages and street kids and also to give aid for natural disasters. The IRS would not allow the board of a registered charity to be related, especially if anyone gets paid for services. They determine who the board members may be and how the donations are utilized. There are a myriad of ways to lose the 501(c)3 designation, which is not free you have to pay to get and maintain it. The list of rules that you must abide by just to be a registered charity definitely requires the services of a lawyer to insure that you are not breaking the rules. Breaking said rules could get your 501(c)3 status revoked cause you to be removed from the board or even imprisoned. Personally I do not want the federal government or the IRS controlling how the charity is managed. That is the job of the contributors and the board.
I setup the World Orphans Fund as an unregistered charity so that WE (the donors and the board NOT the government) can determine how it is run and where the funds are spent. I ask only for $1.00 a month from each donor, there are a few reasons for that. First I wanted to keep it a small amount so that even children could afford it (for parents wishing to get their children involved with charity at an early age). I also wanted it to be a small amount so that the donors would not have to worry too much about how their money is being spent. Keep an eye on the website World Orphans Fund and if you are unhappy with the way we spend your money QUIT donating, and you have not lost much. Personally I think you will be VERY happy with the way the money gets utilized, but that remains to be seen. If you have a complaint you can always email worldorphansfund@gmail.com and we will respond to your concerns.
I can understand people not wanting to risk $50 or more a month on a new charity with no track record, which is the another reason I have kept the requested amount so low. With the donation amount being so low we need to get a LOT of people involved, We need your help to do this.
I wanted to have the donation of $1.00 be deducted each month from a debit or credit card, unfortunately paypal charges a 30 cent fee plus 5 percent on each transaction and other credit card systems charge similar amounts. This means that 65 cents out of each dollar would actually get to the charity. That is why it is set up to do a $12 donation once a year for 5 years, so the charity receives 93.5 cents of each dollar. You can of course cancel it at any time that you believe your money is being spent frivolously.
I hope I have addressed your concerns about donating to an ‘unregistered’ charity and how you can insure that your donations are well spent.
Please feel free to add your comments
