Charitable organizations are legal entities organized by people. It's not a money box, neither it is a group of well-wishers; it's just a way to do good legally. Such organizations always have their goals specified in their statutes. These goals have nothing to do with the enrichment of founders and participants of charitable organizations. A charity fund cannot simply collect money and give it all to the founders like commercial companies do. If it does, the director of such fund will be imprisoned.
Charitable funds do not enjoy any favorable condition
Like commercial entities, charity funds pay taxes. If the fund sells something, it also pays the income tax. It has not any favors compared to other organizations. A charitable organization can be supported by government or not. This way or another, a fund reports of its actions and operations to the authorities. Through such reporting, it confirms that it does what it is ought to do, that it does not spend money on something else. That is why, it's more difficult for a charitable organization to defraud compared to a private person that does not report on anything.
As for benefactors and donators, a charitable organization can report to them or not. Normally this obligation, if it applies, is mentioned in a contract. The form of reporting is free. This sign can help people understand if the fund is honest, transparent and professional. The more open it is, the more reasons to trust it.
Activities performed by a fund have nothing to do with a hobby or entertainment, it is work. A charitable organization has a staff schedule, obligations, salaries (normally rather small) and vacation schedules. Such an organization cannot exist only by the efforts of volunteers. Sometimes fund employees have another basic source of income.
Targeted and untargeted donations
Targeted donations can be spent only on those particular things they have been donated for. All other conditions are stipulated in written agreements. As for non-targeted donations, a charity fund has to spend them on its charity programs. Only 20% of its budget can be spent on maintenance of a fund – salaries, advertising, rental, and other administrative expenditures.
Volunteers are not angels or magicians
It is a nervous job. Those who professionally and permanently work in the charity sphere, have a tough life. They have as much love as other people do. They are not ready to die for others, it would be heroic, not professional. No one has to demand this from people. High qualification is in other things – to maintain a charitable organization, to make it work flawlessly and promptly, even in hard situations. And this work could not be done professionally with soft personal boundaries. Respect and compassion are good but your own boundaries should be defended no matter what. This way you can do more.
Charitable organization is always more serious than a private person
A charity fund is a serious entity. Yes, it can be less popular and less successful than a private person. But the very fact of its registration was that people gathered, did something, overcame some obstacles, speaks forthemselves. Nobody would register a charitable organization with an intention to abandon it tomorrow. Only charity funds and other organizations can solve long-term and serious charity problems – to create shelters, to build hospitals, support not a single person but hundreds of people, those suffering from serious diseases, serious rehabilitation of people from addictions, and children who are left orphaned. A private person is not stable enough to solve these problems.
This is why the easiest way to help other people is to join a charitable organization. It has experience, it knows how to act and promptly respond to calamities.