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What are reasonable administration costs for a charity?


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We appear to have two different charities.

 

The one with the flashy website - The Al Mustafa Welfare Trust International - charity no. 1118942 - registered in Hounslow - latest accounts well overdue - max income £10k a few years ago so all money probably went on the website and its since ceased to be to all intents and purposes.

 

http://www.charity-commission.gov.uk/SHOWCHARITY/RegisterOfCharities/CharityWithoutPartB.aspx?RegisteredCharityNumber=1118492&SubsidiaryNumber=0

 

The Rotherham one - Al Mustafa Trust International - charity no. 1114028

 

http://www.charity-commission.gov.uk/SHOWCHARITY/RegisterOfCharities/CharityWithoutPartB.aspx?RegisteredCharityNumber=1114028&SubsidiaryNumber=0

 

Hi Longcol I just spotted that and got a reply from Trust International saying the Welfare Trust are nothing to do with them. I wonder if the similar name is deliberate. Thanks for the links, will do some more digging when I get a moment.

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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.

 

I was in London a few months ago and watched a sculptor build up a plaster tiger from its skeleton. The event was to raise funds for a save the tigers charity.

 

Pretty soon there were dozens of folk around signing folk up for direct debits to the charity. They weren't interested in cash donations or cheques they were intent on signing up folks on direct debit. It seems that it is pretty standard to obtain a commission of around £150 for each DD client you sign for charities, regardless of how much their contributions are or whether they cancel the DD after 7 days.

 

I find that shocking

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Most 'chuggers' (charity muggers who accost people in the city centre - "Can I borrow you for 30 seconds mate?"etc) only want to sign up the public to direct debit payments. This qualifies them for a commission.

 

http://news.bbc.co.uk/1/hi/programmes/newsnight/8946145.stm

 

 

Last year, 750,000 people signed on the dotted line, giving an average contribution of £90 a year.

 

But a Newsnight investigation has found the charities are often paying the companies, in effect, £100 or more for each signature they collect, meaning in many cases the company is paid more than the charity will raise from that donor in the first year.

 

As part of our investigation, Newsnight contacted 20 leading charities.

 

The British Heart Foundation confirmed it paid the equivalent of £136 per signature. Cancer Research UK said it paid an average of £112 to recruit each donor and in total paid face-to-face fundraisers £3m a year. Guide Dogs said it paid out nearly £2m annually.

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http://www.al-mustafa.co.uk/ is the website for the rotherham one, the percentage spent on fundraising is still insanely high but they do appear to actually do some stuff.

 

The hounslow one looks like straight fraud as they are still actively solliciting funds without any charity number displayed and look to be insolvent as a charity.

 

Ta for the link. I have had a look at the 2010 report where a comment is made that if £20 is spent supporting an orphan, the full £20 will go to the orphan, otherwise I see no references to how the money is deployed.

 

My work is involved in sending volunteers out to Pakistan, hence the interest in this charity but there must be others with high operating costs.

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http://news.bbc.co.uk/1/hi/programmes/newsnight/8946145.stm

 

 

Last year, 750,000 people signed on the dotted line, giving an average contribution of £90 a year.

 

But a Newsnight investigation has found the charities are often paying the companies, in effect, £100 or more for each signature they collect, meaning in many cases the company is paid more than the charity will raise from that donor in the first year.

 

As part of our investigation, Newsnight contacted 20 leading charities.

 

The British Heart Foundation confirmed it paid the equivalent of £136 per signature. Cancer Research UK said it paid an average of £112 to recruit each donor and in total paid face-to-face fundraisers £3m a year. Guide Dogs said it paid out nearly £2m annually.

 

Look at the bigger picture, the charity gets a mug to donate for many years to pay for sales, admin's flash company cars etc, it was money from nothing and they wouldnt have got the sig if those sales person wasnt so good at getting mugs to sign on dotted line

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I am aware of the Direct Debit costs since they were covered by the media. I have found this link about the Fundraising Standards Board

 

What concerns me is that a relatively small charity can set-up, get money coming in by 'pressing the right buttons' and then use as much as it likes in buying equipment and paying salaries with minilal transparancy. It must be tempting for some less scrupulous people to 'profit' from others' misery.

 

I suppose the weapons industry has been doing it for years but then they aren't a charity.

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Look at the bigger picture, the charity gets a mug to donate for many years to pay for sales, admin's flash company cars etc, it was money from nothing and they wouldnt have got the sig if those sales person wasnt so good at getting mugs to sign on dotted line

 

So folk who donate to charities are mugs then?

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