During the process of establishing Reliance Foundation [a tax-exempt organization under the internal revenue code 501(c)(3)], we became acutely aware of other charitable organizations, and the necessary operating expenses required for most of them to operate efficiently. It’s most common for organizations to utilize a portion of donated funds to pay these expenses, such as salaries, office leases, utilities, fund-raising projects and seminars, etc. In some extreme instances, we found that less than 10% of donated funds were actually dedicated for the intended cause. It was more common, however, to discover that the majority of organizations utilized somewhere between 80-90% of donated funds for their intended causes. We wanted to be different. We wanted people to know that their generous donations would not be abused or mishandled.
It was, therefore, critical for the founders of Reliance Foundation to make any potential donor aware that 100% of any donation will be utilized for the intended cause. Our expenses, we feel, are nominal, and we are happy to pay them ourselves.