How the ideal charity would spend its money, according to the public
Melanie May | 24 June 2016 | News
The ideal charity would spend 14% of its income on fundraising and 58% on beneficiaries, according to a nfpSynergy report into public views on charities.
nfpSynergy questioned a representative sample of 1,000 adults aged 16+ in the UK for How would the ideal charity spend its income?, and found that the public is happy for charities to spend 14% of their income on each of fundraising, campaigns, and running costs.
The report also questioned the public’s deciding factors when it comes to giving, and found that fundraising costs come last on the list, despite last summer’s media attention on charities’ fundraising activities. The biggest deciding factor on whether to support a charity or not was the number of beneficiaries, at 34%, followed by CEO pay at 31%, charity income at 20% and finally fundraising costs at 16%.
The survey also questioned which activities and staff members the public considers to count as part of a charity’s administration costs, which as fundraising costs and which as money spent on the cause. It found that many members of the public seem to misunderstand what comes under these classifications, with 24% regarding a magazine giving people information about a medical condition they suffer from as fundraising, and 20% considering a person campaigning to change the law also as fundraising. 69% also see a charity CEO as an administrative cost.
The report states that: “Although the sector is generally open with its accounts, the public still craves more transparency or a more ‘managed transparency’”, and recommends a greater level of clarity and openness around financial matters by presenting supporters with key facts from a charity’s accounts rather than directing them to an annual report, or to the Charity Commission website for information.
It also recommends that charities ensure they talk about their decisions on where and how they spend their money with donors to ensure that it is they who are setting the agenda, and also ensure that communications are very clear about how each element of work contributes to the aims and objectives of the charity.
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About Melanie May
Melanie May is a journalist and copywriter specialising in writing both for and about the charity and marketing services sectors since 2001. She can be reached via thepurplepim.com.