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Bad charities in America

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    'The Factor' investigates charity money not being properly used

  • Duration 4:02
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Our resolve -- segments and I giving money to charity it's estimated that last year America's donated an astonishing.

300 billion dollars charitable -- But a new book with charity for all why charities are failing in a better way to -- says a good portion of that money was not properly -- -- stuff in New York the author of the Balkans stern former CEO of national public radio.

I wanna I wanna do this as not a slam against these charities but in a way to make them better.

All right the first charity that caught my -- in your book mr.

stern is the American Red Cross what's the problem.

But the the problem with the Red Cross is think of them as a supply line company.

They're brought in in the biggest crises in our past Katrina hit -- Haiti.

9/11.

And their job is to move thousands of people -- tons of materials.

And then and then not good that in these -- critical situations that the organizations think the viewers nations are that are good -- it.

The red cross -- to me a FedEx Wal-Mart the US military because they invest billions of dollars -- to supply line management.

Red Cross doesn't have that money people won't give money to the Red Cross for that to give it to them when disaster happens to get the goods and services to those people.

They'll never invest in the next victims.

And that's the problem all right so when you -- money -- -- Red Cross in an emergency situation a lot of it just sits there.

Bob because they can't get it to the folks who need it that's essentially the profits right okay.

-- -- -- one you mentioned is a drug abuse resistance education called dare.

That is supposed to you know steer American children away from narcotics what is the problem there.

So the problem with -- Put very simply as it doesn't work bill.

There was started by Daryl Gates that police chief of Los Angeles back and early eighties.

He was tested rigorously by randomized controlled test for about a decade.

Every -- including those by proponents of it showed that didn't work the fact often had negative consequences kids actually started to learn about how to use drugs.

But that people who actually defended there.

Affinity believe that in the -- -- politically and managed and it keeps going it's the one charity that I know -- listed in sort of a federal registry of social programs that don't work can still billion dollar program thirty years -- Money flows in results are not happening and obviously to draw your own conclusion now you -- the CEO of -- as I mentioned.

You know our government money charitable money people buy the albums by the drifters or whatever you saw -- that week.

And is that an effective situation there.

It's my I think so I spent a dedicated and sharp and proud of my association -- -- But one of the what things I saw and actually got me on.

The process of -- -- three year process of writing this book is a problem a lot of charities have which is.

Their love with their own narrative they are willing to be accountable to be transparent.

To put there are sort of money where their mouth is when I was NPR -- pushed them to have standards and accountability and transparency.

I'm going to board meeting and I get fifteen different definitions of what success looks like to come back the next day it still be fifteen but -- fifteen different ones he's actually a great organization.

But like many charities I think it is challenged to try to find.

To show to be set one standard be accountable to the American public support and that actually led most -- these.

People -- organized.

And more efficient in the way to use -- -- I only have fifteen seconds habitat for humanity Jimmy Carter made it famous.

Problem there.

I don't really know one of things about cherries in general and I'll try to make the short bill is that they often don't.

Show their hand.

They don't see -- they're not transparent to the public.

One source Mattel is sort of give well which is a -- -- -- rating agency going to habitat for me and asking for information.

Essentially been rebuffed I think charities have that responsibility to the American public and you know habitat it's got to be transparent because there -- a lot of money artists are very interesting book we appreciate it we come.

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