How Much Money Donated to Shriners Goes to Charity?

Understanding how donations are utilized is a common and important concern for individuals considering charitable contributions to Shriners. The Shriners organization has a long-standing history of philanthropic endeavors, particularly through its support for Shriners Children’s, a healthcare system dedicated to pediatric care. Financial transparency is a cornerstone of responsible charitable giving, allowing donors to assess an organization’s efficiency and commitment to its stated mission.

Understanding the Shriners Organization

The Shriners encompass two primary, yet distinct, entities: Shriners International and Shriners Children’s. Shriners International is a fraternal organization with a rich history, while Shriners Children’s operates as a charitable healthcare system providing specialized pediatric care. While separate legal entities, they are deeply interconnected through their shared mission and values.

Donations intended for the charitable healthcare mission are typically directed to Shriners Children’s, which is a qualified 501(c)(3) charitable organization under IRS regulations. Shriners International, the fraternal arm, also supports Shriners Children’s through fundraising efforts and volunteer activities. For example, local Shriners temples host fundraising events that contribute millions of dollars to the healthcare system. Shriners International members volunteer their time, including transporting patients to Shriners Children’s locations at no cost to the families. Shriners Children’s explicitly states that approximately 80% of all funds spent each year are dedicated to patient care, research, and education.

Accessing Financial Information

The most direct approach is to visit the official websites of Shriners Children’s, where annual reports and financial statements are typically published. These documents provide an overview of the organization’s financial health and how funds are allocated.

The IRS Form 990 is another primary resource for financial information on tax-exempt organizations, including charities. This annual tax return provides detailed information on an organization’s mission, programs, and finances, including revenue, expenses, assets, and liabilities. Shriners Children’s, as a 501(c)(3) organization, files these forms, which are publicly available.

Independent charity watchdog organizations also offer valuable insights and access to financial data. Charity Navigator, a prominent independent evaluator, provides ratings for Shriners Children’s based on financial health, accountability, and transparency. Shriners Children’s has consistently earned a Four-Star rating, which is the highest possible. GuideStar is another platform where donors can find financial information, including Form 990s, for many nonprofit organizations.

Interpreting Financial Metrics

The “program expense ratio,” sometimes referred to as the charitable commitment ratio, indicates the percentage of a charity’s total expenses spent directly on its mission-related activities. For Shriners Children’s, this would include direct patient care, research, and educational programs. Charity Navigator generally awards full credit to organizations with a program expense ratio of 70% or more, while other agencies suggest 65% or higher. Shriners Children’s states that approximately 80% of its funds are dedicated to these program services.

“Administrative overhead” refers to the percentage of expenses allocated to management and general operations, such as office space, utilities, salaries for administrative staff, and legal services. While donors often prefer low overhead, some administrative costs are necessary for effective operation and compliance. The Better Business Bureau recommends that charities spend no more than 35% on administration and fundraising combined. Some experts suggest keeping administrative costs below 20% for optimal efficiency.

“Fundraising efficiency” measures how much it costs a charity to generate one dollar of charitable contributions. This ratio helps assess the return on investment for fundraising activities. A commonly considered strong benchmark for fundraising efficiency is spending $0.20 or less to raise each dollar, meaning a ratio of 0.20 or lower.