As some of you may be aware, I work for a local charity and it is interesting reading these comments. I, like many, detest the chuggers and in Glasgow they have actually introduced new rules limiting the number and location where the street chuggers can go.
Regarding an earlier point on only contributing where the money goes to the charity, this leads to a few questions. A few scenarios:
1. We might raise £40k in a specific appeal and this money goes towards the funding of a new nurse for a year. Therefore, that 40k, it could be argued, all goes towards "salary and admin costs"?
2. A charity might run a fundraising dinner, say a Sportsman's night. Might take in £100k but have 25k in costs between venue, speakers, prizes etc. So 75k profit. But without spending the 25k, you won't get the 75k ?
3. Depending on the structure, the profit to the specific charity from its charity shops may range from single figures (usually the National Charities), to maybe 70% where its a local charity, maybe only a few shops manned by volunteers. Typically the average is about 35% or so though. Shops have in many cases salary costs, rent, utilities, waste disposal (it costs a fortune to dispose of waste even though we don't produce any of our own!)
4. We do a lottery which is £1 per week and the prize money is only £500 top prize. But we have 15000 players playing it every week. We have reps going round the doors trying to get people to sign up and they can pay by Direct Debit or cash collection. These reps are paid commission. Again, without these staff, the charity would not get the profit of close to £1/2m that they do get. But, believe it or not, the sales pitch is to pay £1 per week to the charity and also get entered into a weekly draw. Very rarely do the people actually ask what the prize money is - they just want to help their local charity and this is where being local is very advantageous as many will know someone who has used our services.
5. Re the point made regarding the charity wanting to know when they were getting their legacy income. Although the manner in which they have appeared to do it is definitely wrong, I do believe there is something within the Regulatory rules or Accountancy rules that states that once you are aware of a legacy coming, it needs to be included in accounts in some form or another (can't remember the speccifics of the rules). This may have been the reason for the question.
Before giving to a charity, instead of asking about costs etc, I believe the question should be about their assets and reserves. Some charities are sitting with obscene amounts of money with no plans to spend any of it. Thankfully, most of the trusts / legacies etc which are available now scrutinise accounts before giving any Grants.
Finally, probably the most cost efficient method of giving a donation is to go to the charity itself and hand over cash or credit card but even those will incur fees with admin staff having to process it!
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