Articles tagged with "donors"

For every dollar you donate to charities, a portion is usually directed towards covering administrative and fundraising costs. What is the maximum percentage that is acceptable to you? The rule of thumb is a fundraising efficiency ratio of 30:70 - 70% to programming, and 30% to overheads (including fundraising, management, and other general costs). However, amongst charity watchdogs and monitors such as CharityWatch, Charity Intelligence Canada, and the Charities Review Council, a charity is considered financially efficient, or at least performing satisfactorily, if overhead spending is between 20 and 35%, with between 65 and 80% distributed to programmes. Some charities and non-profit trade organisations argue that excessive focus on financial overhead can cause harm, and can actually have an overall detrimental effect on programme investment. However, how overhead spending is calculated and communicated varies, and from some charities the amount deducted from donations for admin and fundraising is less than their true costs.