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Update: Good Charity You Can't Judge a Book by its Cover or a Charity by its Name

   Apr 09, 2014

In the May/June 2013 Charity Rating Guide & Watchdog Report, CharityWatch cautioned donors about a new charity formed in late 2010 called Good Charity, Inc., which solicits donations for several funds it has created, including the Children’s Leukemia of America Fund, Disabled and Paralyzed Veterans Fund, Disaster Relief & Aid Fund, National Breast Cancer Awareness Fund, and Terminally Ill Children’s Fund. Good Charity has been operating for less than the three-year period CharityWatch requires before a rating is conducted, but our initial research and follow-up review shows ample reason for concern regarding the creation of Good Charity and its fundraising and program service activities.

Contributions received by Good Charity more than tripled between 2011 and 2012, increasing from approximately $1.44 million to $5.31 million. Unfortunately, however, Good Charity’s program services spending as a percentage of total expenses decreased from the already extremely low 7% in 2011 to a mere 4% in 2012. Further, the amount of funds Good Charity distributed in the form of grants to the charitable causes it supposedly was formed to help was only $203,862 in 2012, less than 4% of total contributions raised. On the other hand, Good Charity’s fundraising expenses exceeded $4.44 million in 2012, yielding a cost of $84 to raise every $100 of funds.

NOTE:  CharityWatch added Good Charity to its charity ratings in January 2015. It has received "F" grades based on its poor financial performances in 2015 and 2013.

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