On Foundations & Non-Profits

I really admire people who start foundations for research and the like, I really do. However...

I think we have too many. A good chunk of money donated to small foundations are tied-up in administrative costs or costs related to marketing to make more money and get more donations.

In all honesty, I have not looked for the research to see if smaller foundations are more cost-effective than the big giant ones. But, the big one I know of around these parts, which I have given money to, is the Jimmy Fund. They have a massive telethon every year, and they have been the major charity of the local nine (The Boston Red Sox) for decades. I know they now have managed to offset all administrative costs through interest they make, i assume this is how they are doing it. So, i wonder if this is a common thing amongst the bigger non-profits.

All smaller, much-less known foundation around these parts is the Sean McDonough foundation that has only managed to raise $2 million in the roughly 6 years it has been in existence. While $2 million is a good chunk of money, it has to be largely eaten up by administrative costs. Even if it has not, a charity that can only raise about $500k per year seems to be almost a waste of time and energy.

We need less non-profits pooling their funds.