# Effectiveness v efficiency

- Link: https://fundraising.co.uk/2011/03/01/effectiveness-v-efficiency/
- Published: 2011-03-01T16:02:44+00:00
- Author: Simon George

**Every couple of years, the tabloid media target charities that “waste money on
fundraising and administration”. So how can you protect your charity from this charge?**

It’s something we’re all familiar with and can be very damaging if your charity 
is labelled in this way. Donors will certainly think twice about supporting you 
again and unless you can make a strong counter argument, you may well see people
cancelling their direct debits too.

The fundamental problem is essentially a misunderstanding of what to measure when
judging the impact of giving. The media standard has so often been pence in the 
pound on admin and/or fundraising. But this is a measure of efficiency, which tells
us nothing about the impact you are making.

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What we should be measuring, of course, is effectiveness. It is far more important
to know when giving money to a charity how many lives can be saved, how many people
healed of a disease, how many acres of rain forest protected etc. This after all
is what charities are really about– making a difference in the world. Of course 
we should not be wasting money, but to measure efficiency above effectiveness is
surely barking up the wrong tree.

So what can you do to protect your charity from the assault of the tabloids and 
persuade sceptical donors that you are worth their investment?

First, know what your costs are and know how to explain them when asked. Practise
this on your mum or your gran and see if it convinces them. Then when the journos
come a-calling, you will be prepared for their questions. If your costs do seem 
high of course, this may need to be addressed in your budget and next set of accounts.

Secondly, identify some simple unit costs which demonstrate your effectiveness (“
it only costs us X to achieve Y”). With a calculator and a bit of thought, you should
be able to come up with some impressive sounding figures.

Thirdly, use these examples of your effectiveness (and cost effectiveness) in your
communications. Try to set the agenda with your supporters and lead them into your
way of thinking. Then when the media are pushing their “wasteful charities” line,
you will have given your organisation a degree of protection.

Simon George is a Director of Wootton George Consulting and a Fellow of the Institute
of Fundraising. He has worked in fundraising since 1987 and was the founder of the
IoF’s Trusts Special Interest Group. Today he chairs the IoF’s West Midlands region
and works with a wide range of charities in a consultancy capacity. www.wgconsulting.
co.uk si***@*************co.uk Tel 01785 663600.

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