Bloomdido Posted January 18, 2011 Share Posted January 18, 2011 I remember seeing an article many years ago about Oxfam's administration costs reaching 89 pence in the pound. Since then they have come way down but the shops and salaries and general costs will take some revenue. I know it costs money to raise money and some charities like the Red Cross, employ third-party fund-raisers who stop people on Fargate to try and sign them up to direct debits. How many people stop to think how much of their donation actually reaches the people that the charity supports? Anyway, I came across the Al Mustafa Welfare International site and it seems that despite a glossy website, their accounts suggest that only half of the money they raise gets to Pakistan. Their income seems to be purely from donations and I know of one Mosque locally that donated £1,000. Charities with similar aims publish annual reports giving detailed financial information. I have asked Al Mustafa International for clarification but nothing has been forthcoming. The company is registered in Rotherham. Would it be legal to spend 50% of donations on administration costs for a Charity? Would people donate so willingly if they knew that only half of the donation was reaching the people who needed it? Am I missing something? Link to comment Share on other sites More sharing options...
Forumosaurus Posted January 18, 2011 Share Posted January 18, 2011 Ah needs must though init. I presume the bosses of the charity have it's best interests at heart. Link to comment Share on other sites More sharing options...
HeadingNorth Posted January 18, 2011 Share Posted January 18, 2011 Ah needs must though init. I presume the bosses of the charity have it's best interests at heart. There have been known cases where they did not; I've never heard of this particular charity. 50% of the income being swallowed up in administration costs sounds unreasonably high, unless their income is fairly small to begin with. The Charities Commission has this to say on the subject. Link to comment Share on other sites More sharing options...
Bloomdido Posted January 18, 2011 Author Share Posted January 18, 2011 There have been known cases where they did not; I've never heard of this particular charity. 50% of the income being swallowed up in administration costs sounds unreasonably high, unless their income is fairly small to begin with. The Charities Commission has this to say on the subject. £260,000 received this year. The accountant is the brother of one of the directors and one family member has been employed by the charity. It's all on the Charity Commission website. Link to comment Share on other sites More sharing options...
Bassman62 Posted January 18, 2011 Share Posted January 18, 2011 A friend of mine went rattling the can for a charity in an official capacity, I was astounded how much his percetage was when the can was emptied back at the charity office. Since then I've not donated to most charity cans other than the British Legion and Help The Heros oh and the Shetland Ponies in Chesterfield last weekend. Link to comment Share on other sites More sharing options...
Longcol Posted January 18, 2011 Share Posted January 18, 2011 Am surprised they don't show their registered charity number on their website, something I'm pretty sure that is compulsory for a registered charity (having previously worked for one). http://www.charityfacts.org/charity_facts/how_do_i_tell.html Link to comment Share on other sites More sharing options...
Longcol Posted January 18, 2011 Share Posted January 18, 2011 A friend of mine went rattling the can for a charity in an official capacity, I was astounded how much his percetage was when the can was emptied back at the charity office. Since then I've not donated to most charity cans other than the British Legion and Help The Heros oh and the Shetland Ponies in Chesterfield last weekend. Interesting comment - from what I remember, the tin rattlers cut isn't classed as an administration cost, more of a fundraising cost. Link to comment Share on other sites More sharing options...
INTERVIEWER Posted January 18, 2011 Share Posted January 18, 2011 Some charity CEO's have salaries of hundreds of thousands of pounds - paid for out of donations... Link to comment Share on other sites More sharing options...
HeadingNorth Posted January 18, 2011 Share Posted January 18, 2011 Some charity CEO's have salaries of hundreds of thousands of pounds - paid for out of donations... As the Charities Commission site points out, though, good management is more expensive than bad management, and a good CEO can probably achieve efficiency savings of considerably more than that if he's running a large charity. Link to comment Share on other sites More sharing options...
HeadingNorth Posted January 18, 2011 Share Posted January 18, 2011 £260,000 received this year. The accountant is the brother of one of the directors and one family member has been employed by the charity. It's all on the Charity Commission website. I have to say that it all strikes me as rather "if it isn't illegal, it should be." Link to comment Share on other sites More sharing options...
Recommended Posts
Archived
This topic is now archived and is closed to further replies.