A while back I wrote The Cost of Fundraising where I raised concern about instances where the cost of raising funds using external fundraisers has been substantial, with some reports of this being up to eighty percent of the dollars raised. How can this seriously be justified?
I’ve started looking at charities on the Charities Commission website, and am horrified to see instance where a charity had income of over $4 million – distributed around $500,000 – but their costs were over $3 million – that’s 75% of the money they received from the community being ‘absorbed’ in operational expenditure.
How can they justify that?
Next time you’re asked for a charitable donation, take the time to check out who you’re giving to, look them up on Charities Commission, look at their annual accounts – and if it doesn’t stack up, either don’t give or give directly if you’re being approached by a ‘funding agency’.