Overspending on Charities May Cause Insolvency
"As the economy continues to spiral into the abyss, a growing number of individuals are contemplating bankruptcy. In 2010, 1.5 million bankruptcy petitions were lodged. Since the collapse of the real estate market in 2007, the bankruptcy rate has risen every year, and 2011 is anticipated to be another record year. There are numerous reasons for the large number of bankruptcy filings in recent years, but as the number of bankruptcies rises, so do the number of unusual reasons. Since the terrorist attacks of September 11, charities have used a variety of marketing strategies to raise funds. Today, nearly every charity accepts credit cards for donations and to sell merchandise for profit. By accepting credit, donors feel good about themselves until they receive their credit card bill and realize they bought unnecessary junk from the charity in the name of assisting others. People who use credit cards tend to spend more because they are caught up in the moment and are unaware that they may be placing themselves in a precarious position at the end of the month.With the ever-increasing number of nonprofit organizations, there is a trend toward making consumer purchases charitable acts when made from these organizations. In recent years, numerous marketing campaigns have enticed consumers to spend money they do not have. Typically, these campaigns offer products to consumers with the promise that 25 percent of the profit will be donated to charity. Who wouldn't want to do that? Buy a pair of shoes you don't need and donate the proceeds to charity. Many legitimate charities use these marketing strategies for fundraising purposes. What most people do not realize is that only a small portion of the profit actually reaches the individuals in need.With a large number of individuals filing for bankruptcy, bankruptcy attorneys have observed numerous instances of embedded giving by clients. As their budgets continue to be slashed, schools have been aggressive in their pursuit of these dollars. Not a single day passes without one of the children bringing home one of these enticing offers. Many people feel obligated because it's for the children, so they charge even though they can afford it. These high-pressure tactics cause individuals to overspend, resulting in bankruptcy filings. These marketing campaigns are reciprocal. Even large corporations have jumped on the bandwagon, offering to donate X dollars to your favored charity if you purchase their product or service today. With merchant accounts allowing nonprofits to accept credit cards, there has been a significant shift in their fundraising methods. There are now auctions for high-priced items donated by large corporations in order for them to receive a tax deduction, with the proceeds going to charity. The only issue with this scenario is that many of these situations are high-pressure, and people feel compelled to assist.If you cannot afford it, you should not purchase it. If you have overcharged, you have options. Regardless of the quantity of debt, declaring bankruptcy is always a possibility. Consult with a bankruptcy attorney and discuss your personal situation to determine if filing for bankruptcy would be beneficial. If personal bankruptcy is in your future, learn from your errors and avoid these high-pressure situations.
" - https://www.affordablecebu.com/
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"Overspending on Charities May Cause Insolvency"
was written by Mary
under the Finance / Wealth
category. It has been read 87
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comments. The article was created on 01 June 2023
and updated on 01 June 2023