By SYMONNE TORPY
Walking down Broadway, you navigate past colourfully dressed students, away from the allure of the second hand furniture store and the muscle men handing out pamphlets for the 24-hour gym.
You’re making headway in the street traffic. Then you see the charity worker. Almost frothing at the mouth with enthusiasm, he bounds up to you like a friendly puppy.
He’s wearing a T-shirt with a hopeful message on the front. His flyers are plastered with images of hungry children from far off lands. You think about the kebab that you had for lunch. Guiltily you slow down. Perhaps it’s time to sponsor a child?
‘Sales and marketing’ is what it says under the ‘experience’ tab on my résumé. For six months in 2010, I worked for a marketing company that was outsourced to deal with the pressures of attracting new donors for high profile charity organisations. My role was essentially to sell sponsor kids. They had become commodities– a means of generating an income, with all the morality associated with helping the less fortunate slipping by the wayside in our thirst for personal profit.
The Charitable Aid Foundation recently identified Australia and New Zealand as the world’s most charitable nations. According to the ABS, the Australian public donates about $4 billion per year, more than six times the level of donations made by big business.
But where is your hard earned money going?
Figures from Givewell showed the average fundraising cost in 2009 was 19 cents in the dollar, varying widely between organisations from 2% – 40% in NSW. The micro-regulation of charities is the responsibility of state governments, and in NSW there is a requirement to cap fundraising expenses at below 40¢ per dollar.
Top Comments
Let me say upfront that I do give regularly to charities through their head offices (brought up to tithe ...). I also support the local schools, scouts etc etc when they sit outside the supermarket of a Saturday. But after having worked in a building that also housed the training rooms for a Chuggers company, I NEVER give to them. I've heard lift conversations on exactly the same topics as discussed in this article. Most of the workers in that one were overseas travellers, and if they were earning enough from their chugging to both stay and work in Australia's most expensive city, their cut is way too high.
I think one of the biggest misconceptions people have about charities is that all staff should be volunteers. To run a successful organisation, one that is able to raise money effectively and use it efficiently, needs skilled people. Also, charities are far, far more transparent in how their monies are used than many corporate organisations - they have to be, if they wish to retain tax deductibility status with the Australian Taxation Office. Think about it this way - a charity may use 20% of your donation for running costs, but the other 80% goes to its mission (helping people in developing countries, animal welfare, cancer research etc). On the other hand, a large banking institution probably uses 100% of your fees for running costs and dividends to shareholders. Its a good way of keeping things in perspective.
20 percent would be acceptable, unfortunately most charities admin costs are an awful lot higher than that. Just had this discussion with someone who tried to get me to sign for monthly donations today. He wasn't able to tell me what the percentage was, I had to tell him. I am happy to donate and I do. My favourite charity sends me monthly emails telling me where my donation went and never pesters me for extra. One huge international organisation I used to sponsor, I never heard from unless it was a phone call for more donations. Guess where their monthly donation ended up.