Where Does My Donation Go?

Photo by Tima Miroshnichenko

Recently, there were articles in the paper that talked about how a nonprofit was not receiving all of the donations they were supposed to receive. In fact, most of the money was going to the company that helped them raise the funds.

As a donor, that can feel really icky. It may make you wonder why you’re donating money at all. Your goal is to help people, but if they aren’t receiving the money, what’s the point of donating?

We would like to tell you that this doesn’t happen often; that most nonprofits get 100% of their donations, but we can’t. What the newspaper article talks about is actually a pretty common practice.

You are a generous person. You are doing what you can to make a difference in the world, and it can be incredibly frustrating and surprising to know that your donation isn’t doing what you thought it would do.

Here at the PVLA, we can’t speak for other nonprofits, but we can tell you where your money is going when you donate to us.

Where Your Donation Goes

The first thing to keep in mind when you donate to the PVLA is that we don’t use a middle man to help us raise funds. We either apply for grants or take donations directly. That eliminates needing to pay an outside source for fundraising services.

There is a bit of a caveat in that statement, however. The only time we may not receive the full amount of a donation is if you donate through our online site. Then, the company that processes your payment will take a small fee. However, you have the option of covering that fee, and then we get 100% of the money you donate.

Once you make a donation, how the money is used depends on whether or not restrictions have been placed on the gift.

When it comes to grants, those are typically allocated to a specific purpose, so the money can only be spent on certain things. This blog post gives more information about grants.

When it comes to donations from individuals or private donors, it’s possible for you to allocate your money to a specific program or endeavor. If you do that, the PVLA can only spend the money according to your wishes.

 
However, if you don’t specify how you want your money spent, then it might go into the General Fund. That means the money can be spent at the discretion of the executive director and/or the board of directors. Your money may be used for cleaning supplies or classroom supplies, potentially even to pay instructor salaries. It will be used where it’s most needed.

The Benefits of General Funds

Hearing that your donation might go into the General Fund might sound disconcerting. You might be thinking that buying cleaning supplies isn’t a good use of your money.

That’s fine. It’s your donation, so if you want it to be used in a specific way, let us know.

However, there are benefits to having money in the General Fund.

Sure, buying cleaning supplies doesn’t sound overly helpful or generous, but it does make a difference. Students deserve to come to a clean learning environment, and money is needed to buy those supplies.

Using General Funds to pay for overhead costs, including salaries or bills, is also beneficial. If bills aren’t paid, then we lose our building. If people aren’t paid, then there’s no one here to run the nonprofit.

General Funds are the lifeblood of what we do. Yes, it’s nice and beneficial to have funding for programs, but we also need to keep the lights on—and that’s what the General Fund does.

Having unrestricted funds is just as important as getting grants. We need money for a variety of expenses that are part of running our nonprofit.

All Donations Welcome

Making a donation to a nonprofit is an incredibly generous thing to do, and it does help others. However, we get that it can be upsetting and disheartening to know that the money isn’t going where it’s supposed to go or that the full amount isn’t making an impact.

However, here at the PVLA, all donations make a difference and make an impact on students—whether they are grants allocated to a specific program or unrestricted gifts that may find themselves in the General Fund.

You don’t even have to donate a huge amount to make an impact. If you read this blog post, you’ll see that even $1 can make a difference.

Again, we can’t speak for all nonprofits. There are places that don’t see all the money they raise, but when you donate to us, we use that money to ensure our students are taken care of in a variety of beneficial ways.

The United Way Campaign

You’ve seen the posts on Facebook. You probably got an email announcement in your inbox. There have been articles in the paper. Soon, the United Way will be visiting your place of employment.

The United Way Campaign has begun.

But what exactly does this mean? Why does this event seem to crop up at the same time every year? Is there a way to avoid it?

The answers to your burning questions are included below.

What is the United Way Campaign?

To answer this question, it’s important to understand exactly what the United Way does. According to its website:

“United Way brings people together to build strong, equitable communities where everyone can thrive. As one of the world's largest privately funded charities, we serve 95% of U.S. communities and 37 countries and territories -- making life better for 48 million people every year. Through United Way, communities tackle tough challenges and work with private, public, and nonprofit partners to boost education, economic mobility, and health resources.”

To achieve those goals, they need funding.

And they get most of those funds through donations.

The mission of the Columbus Area United Way (CAUW) is to make sure community members here and in the surrounding area have what they need to be successful in life. Just like the larger United Way, to achieve those goals, they need funds—and most of the money comes from donations.

That brings us to the Campaign. After determining the needs of Community Partners, the CAUW sets out to raise the funds that ensures services are provided to those who need it.

A Variety of Ways to Get Involved

If supporting your local community is something that interests you, then donating to the CAUW might be a good idea. They partner with 15 different agencies in Platte County, as well as have direct programs that impact individuals and families.

When it comes to making a donation, there are many different ways to get involved. If you’re the type who likes to take risks and wants to potentially win some prizes, then participating in the Duck Race might be your cup of tea.

You also have the option of making a one-time donation or making multiple donations throughout the year. The CAUW even makes it easy to make year-round donations by taking pledges directly out of your paycheck.

You also get to decide where your money goes.

If you want to place your donation in the general fund, it will get divided up and distributed to the various partner agencies and programs. Should you decide you want your donation to go to a specific cause, you can designate where your money goes.

Can You Avoid the United Way Campaign?

We really hope you don’t.

We get it. It can feel cringy and uncomfortable when the United Way comes around and asks for money. You don’t want to let anyone down, but you may also feel like you can’t make a huge difference.

Let us reassure you: it doesn’t take much to make a difference.

When it comes to the Duck Race, one duck costs $10, and you have the chance to win some amazing prizes.

When it comes to donations, you can give as little or as much as you can afford. Even if you can only give $1.00 a month, you’re still doing something that impacts a member of the community. Even a one-time donation of $20 makes a difference.

Get Involved with the United Way

The United Way Campaign is underway, and we really hope you’ll find a way to get involved. As a United Way Partner Agency, the PVLA benefits from the generous donors who live in Columbus and the surrounding area—but we’re not the only ones. There are many, many organizations who work with the CAUW to make our corner of Nebraska such an amazing place to live.

Get involved today!