The charities that stole Christmas

OPINION:

Deciding which charities to donate to this holiday season can be tough. That’s especially true at a time when the news is full of charitable organizations that seem to have less than charitable intentions.

With current investigations of the controversial Clinton Foundation and the questionable spending practices of other big name nonprofits, many are asking: Where is the oversight of our nation’s charities?

Perhaps this question wouldn’t be as much of an issue if the Obama administration had used the Internal Revenue Service’s (IRS) resources to scrutinize inefficient nonprofits instead of targeting conservative-leaning ones. State attorneys general have oversight over charities, but many offices are either not well funded or, like the IRS, are politically charged.

Add to this a private charity watchdog system that leaves a lot to be desired in terms of access and toughness, and discerning donors may feel lost in the wilderness. (The Better Business Bureau gives ratings but are conflicted with a pay-to-play conflict of interest that has been well documented.) Here is a brief taste of some of the nonprofits you should consider avoiding or helping out during this holiday season.

For simplicity’s sake, I took the latest CharityWatch subscription-only guide and looked at $50-million-plus charities in popular categories to find grinches and good guys.

CharityWatch grades charities by taking a look at their financial efficiency. It does this by calculating how much of the total revenue a charity brings in is being used for charitable programs, as well as how much is being used on overhead (fundraising, management and other expenses).

Generous pet lovers may think they are benefiting their local humane shelters when they give to large national organizations like the Humane Society of the United States (HSUS) or the American Society for the Prevention of Cruelty to Animals (ASPCA). This wouldn’t be a problem if these groups gave most of their revenue to pet shelters. But they don’t. Only about 1 percent of the Humane Society of the United States’ revenue goes to local pet rescues and shelters.

HSUS and ASPCA both were given C grades by the independent watchdog group CharityWatch, due to considerable overhead spending of around 35 percent of their total budgets. Considering both nonprofits bring in over $100 million a year in revenue, that’s a lot of would-be meals for homeless pets.

It is better to give locally instead of to an organization that hosts glitzy galas in New York City with famous celebrities who are clueless themselves.

A few other organizations to look out for include the American Cancer Society, which also received a C from CharityWatch and spends about 42 percent of its $1 billion budget on overhead. Around half of all cancer-related charities ranked by CharityWatch received a D or F rating.

Instead, for those looking to donate to the fight against cancer, a highly rated charity to look at is the Memorial Sloan-Kettering Cancer Center, which received an A rating for its high efficiency.

For those looking to donate money to U.S. troops, two organizations to stay away from are the Paralyzed Veterans of America, which received an abysmal F rating from CharityWatch, and the Wounded Warrior Project which received a C from CharityWatch and has been plagued by recent scandals involving lavish spending on dinners, hotels and conferences. Unfortunately, 67 percent of veteran-related charities received either a D or F grading from CharityWatch.

Instead, look to donate to the Fisher House Foundation, an A-rated charity that provides housing for military families while their loved ones are being treated.

With so many options and so little time over the holiday season, it can be nearly impossible to decide what charities to give to. But in order not to give to one that will waste your money, it is best do some research. Giving locally, where you can both see your money at work and talk to the people who run the nonprofit to get a better feel for the group, is a good place to start.

• Richard Berman is the president of Berman and Company, a public affairs firm in Washington, D.C.