I was reading an investigative article written by a brother about Islamic Relief USA, and was shocked about the numbers since I have been a donor to Islamic Relief for years.
Islamic Relief USA claims it only takes 14% or 12.5% of donations in administrative cost, but their own numbers contradict this and show a way higher cut.
From the article:
From reviewing the organization’s latest available 990 (from 2019), even a cursory glance shows that a 14% or 12.5% administrative cost claim seems fanciful, at least if you look at it from a donor’s perspective, how much benefit comes from a donation to those in need. IRUSA, in its federal filing that year reported salaries of $13 million, other expenses of $15 million on revenue of $89 million, which is 31% (it’s about 40% when calculated based on donations). Fundraising expenses alone accounted for 15% while salaries about 15% (all numbers rounded). That IRUSA’s expenses claim of 12.5% does not add up based on figures they have provided themselves is obvious, and we are talking about only the US layer of expenses.
Also:
But just adding the costs together gets us from 44 to 53 cents on the dollar going to administration. While that is enormous, it is more than likely the overall costs are higher, since IRW does use partner organizations to distribute aid, and they will tack on overhead undisclosed to the donor.
It is better to find another Non-Profit that takes way less overhead and that are more transparent about their costs.
Another important article: Launchgood’s “Zakat-Verified” is Worthless. Don’t Trust it.
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