Community Sector Banking
MEDIA, JOBS & RESOURCES for the COMMON GOOD
NEWS  | 

Public Over-Estimates Charity Costs


Monday, 3rd November 2008 at 2:19 pm
Staff Reporter
People in the UK are dramatically overestimating charity administration and fundraising costs - but are more tolerant of fundraising costs according to a new survey.

Monday, 3rd November 2008
at 2:19 pm
Staff Reporter


0 Comments


FREE SOCIAL
SECTOR NEWS

 Print
Public Over-Estimates Charity Costs
Monday, 3rd November 2008 at 2:19 pm

People in the UK are dramatically overestimating charity administration and fundraising costs – but are more tolerant of fundraising costs according to a new survey.

The survey found that, on average, it is acceptable for a charity to spend twice as much of its income on fundraising (23% of income) than on admin (11% of income).

However, they falsely believe that, on average, over a third (35%) of a charity’s income actually goes on fundraising and a huge 40% on admin, when true figures for average-sized charities are likely to be far lower than this.

Not for Profit think tank and research consultancy nfpSynergy has tracked 1000 16+ year olds throughout mainland Britain for the past decade, uncovering donors’ attitudes and habits as well as what they think of charities’ fundraising strategies and tactics.

The survey says encouragingly for fundraisers, the fact that the gap between perceived actual and acceptable average spend is much smaller for fundraising (35% – 23% = 12% gap) than for administration (40% – 11% = 29% gap) suggests that public are happier for charities to spend money on fundraising, and are thus less likely to think that charities “misspend” their income on this activity.

Moreover, compared with last year, there also seems to be a greater public willingness for charities to invest in fundraising to boost future income, with 2 in 5 (41%, July 2008) now agreeing that “it makes sense for charities to spend more of my donations on fundraising this year, if it will increase their income for future years” – only a third (34%) having thought the same last year (July 2007).

nfpSynergy’s boss Joe Saxton says the public appears to significantly overestimate what charities spend on their fundraising and their admin costs, and show especially low tolerance towards the latter.

Saxton says this should prompt charities to better explain the true level of, and the rationale for, all of their costs.

He says greater relative public acceptance for fundraising, plus an increased willingness to invest in fundraising to boost future incomes, suggests this educational task vis-à-vis costs may be slightly easier in relation to fundraising than admin.

He says that it’s all the more urgent, then, for admin to be positioned as ‘necessary management’ – not wasteful burden, but rather an essential lubricant without which the very wheels of charity would not turn.

The survey results can be downloaded at: www.nfpsynergy.net




Got a story to share?

Got a news tip or article idea for Pro Bono News? Or perhaps you would like to write an article and join a growing community of sector leaders sharing their thoughts and analysis with Pro Bono News readers?

Get in touch at news@probonoaustralia.com.au

Tags : Fundraising,

 Print

Get more stories like this

FREE SOCIAL
SECTOR NEWS

Write a Reply or Comment

Your email address will not be published. Required fields are marked *



YOU MAY ALSO LIKE

GoFundMe opens fundraising doors for Australian charities

Maggie Coggan

Wednesday, 24th April 2019 at 5:30 pm

giveOUTday comes to Australia

Wendy Williams

Monday, 25th March 2019 at 4:51 pm

Calls for stricter charity approval process

Maggie Coggan

Monday, 18th March 2019 at 3:58 pm

Gen Y emerge as Australia’s most generous givers

Luke Michael

Thursday, 14th March 2019 at 9:00 am

POPULAR

‘They don't see eye-to-eye’: Leadership turmoil engulfs the ACNC

Luke Michael

Tuesday, 16th April 2019 at 8:24 am

People with severe mental illness left behind in NDIS transition

Luke Michael

Tuesday, 16th April 2019 at 4:25 pm

NFPs struggling to measure their impact

Luke Michael

Thursday, 11th April 2019 at 4:33 pm

Government under mounting pressure over disability royal commission appointees

Luke Michael

Thursday, 18th April 2019 at 5:36 pm

Community Sector Banking
pba inverse logo
Subscribe Twitter Facebook

Get the social sector's most essential news coverage. Delivered free to your inbox every Tuesday and Thursday morning.

You have Successfully Subscribed!