Quote:
Originally Posted by Papa_lecki
First, look at the financial statement called “statement of activities” - it shows you the percent of costs spent on admin and fund raising. If that percent is above 7 to 10%, its not a well run charity.
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I have always gone with "expenses" 15% or less, with 85% going directly to beneficiaries. Why? Because advertising is needed to increase the amount that is given - more will be helped if a charity advertises (within reason). Also, hiring able and talented people is important. Charities may see their best people leave if salaries are not competitive. I've been deeply involved with my favorite charity, Compassion International, visiting headquarters, working for them, attending special events, and I am convinced that the 15% to expenses is wise. They are careful to keep it under that percent. They have more than doubled the number of people they help over the years. I have visited the sites where they are helping and they do great work.