Do charities spend too much on fundraising and admin? 🐘
Some do. Many don’t.
Like so many broad and generic questions in life, the answer isn’t black and white. When this topic comes up around me, I love asking people what they base their opinions on regarding fundraising and admin costs. The responses often spark more interesting conversations. So, I encourage you to reflect on what your views are based on. Then, challenge those assumptions—it can be a fun and important learning process.
To be blunt, conversations around this topic quickly uncover why I think the biggest problem in the charity sector is that there is nowhere to really learn about giving charitably. The dominant stereotypes and perceptions of how charities efficiently spend their money say more about our collective “charity illiteracy” or how little most of us know about charities and how they are run.
You see, the more you learn about charities and their work, the better you'll understand that not all spending on fundraising and administration is excessive. You'll also be able to identify when such spending is truly excessive in specific situations.
Another thing I do when it comes to this topic is ask people to imagine themselves in the shoes of someone working at a charity. Why are people working in charities perceived to be paid too much, while those launching the accusations never seem to think of themselves as overpaid?
I’ve never heard a good answer to why charities shouldn’t be allowed to pay well enough to attract and retain great talent. This question almost always conflicts with the ultimate issue of effectiveness inside charities.
No matter your views on charity expenses, you can easily find out how much they spend on operations, including fundraising and administration. Every registered charity in Canada and the USA must publicly share their financial data annually. This information is available on Charitable Impact's platform for over 85,000 Canadian charities and on the Canada Revenue Agency - Agence du revenu du Canada’s charities site.
Consider this: Have you thought about your role in how much charities spend on fundraising? If you only give when asked, you drive up those costs. Proactive donors, who make giving a regular part of their lives, help reduce these expenses!
Get the full scoop in this month’s #Charitableadvice video! 🎥
When researching registered charities, have you ever wondered “What will my donation be used for?”
This common question has donors wondering how much is too much for a charity to spend on fundraising and administration.
Charitable Impact Founder, John Bromley, explains the nuance behind charity administration costs and the role you play in influencing them as donors.
Check out the full video and learn more about why certain charities have lower costs than others on the blog.
Learn more: https://bit.ly/3yMHJAD
