Friday, January 28, 2005

Charities that "Waste Your Donation"

League table of charities?? Seems like an interesting idea...

The Daily Mirror has published a league table of charities including Cancer Research UK, Oxfam and the NSPCC by Searchline Publications, warning the public not to donate to charities that "waste your donation" on administration: http://charityleaguetables.co.uk/


WHAT'S INCLUDED IN CHARITY LEAGUE TABLES?
An "Information Sheet" for each of over 100 well-known UK charities which analyses and details the Income & Expenditure Account, and Balance Sheet for up to the last 5 years and calculates 10 ratios and rates. These ratios and rates, together with figures, are put into "League Tables" a total of 15 which are also included. These League Tables are:

- COST OF FUNDRAISING: How much each charity spends for each £1 you donate, on fundraising.

- COST OF ADMINISTRATION: How much each charity spends for each £1 you donate, on administration.

- TOTAL COST OF FUNDRAISING & ADMINISTRATION: Some charities spend a greater proportion on fundraising than administration so, in addition, we total the two figures in the £1 together. Some charities spend getting on for half of what is donated on fundraising and administration combined.

- RETURN ON RESERVES & RESOURCES: How much income as a percentage of total reserves and resources. The greater the percentage, the more efficient the charity at raising funds.

- RESERVES & RESOURCES / ASSETS: What percentage of assets comprise reserves and resources. The higher the percentage, the less of your donation is being spent.

- INCREASE IN TOTAL COST: The percentage increase in costs of fundraising and administration between the latest year and the year before. The higher the percentage the greater the proportion of income is going on these costs.

- INCOME GROWTH: The percentage increase in income between the latest year and the year before. The higher the percentage the greater the ability of the charity to generate more funds.

- RESERVES & RESOURCES GROWTH: The higher the percentage the greater the proportion of income is being saved, not spent.

- AVERAGE REMUNERATION PER EMPLOYEE: The average amount it costs to employ a worker. The higher the figure, the greater the pay.

- TOTAL INCOME PER EMPLOYEE: How much income, on average, the charity generates for each employee. The higher the figure, the greater the average income.

HEALTH WARNING: League tables are financial analysis only. They tell you where each charity is positioned financially in terms of size, efficiency and growth but do not explain why, that's for the charities.

No comments: