Yahoo News featured Tom Esslemont’s most recent Thomson Reuters Foundation article that examines the fundraising spending habits of aid relief charities. Esslemont is an investigative correspondent for the Thomson Reuters Foundation, which is the charitable arm of the global news and information source, Thomson Reuters.
Exclusive: Which aid relief charities spend the most on fundraising?
By Tom Esslemont | Thomson Reuters | 7/14/15
As the business of international aid booms, rival charities are locked in a race to attract donors with some spending close to a fifth of their resources on fundraising, a Thomson Reuters Foundation investigation has found.
A survey of the world’s 50 biggest humanitarian non-governmental organizations (NGOs) by expenditure found their total annual spending has more than doubled to $18 billion in the last 10 years – greater than the national GDP of one third of the world’s countries.
The growth has come as more public money is funneled to victims of disasters and conflicts.
The competition for funding is driving NGOs such as World Vision, Save The Children and Oxfam to invest more on attracting cash. The survey found that almost $1.5 billion (6.6 percent of total expenditure) was spent on fundraising in 2013-14, compared to an estimated $500 million (5.8 percent) in 2003-04.
But in an unregulated sector that spans the globe, readily comparable data on spending is not available, experts say.
Lowering Charity Fundraising Costs
The cost of raising funds can be staggering for a nonprofit organization. As a mater of fact, the world’s largest NGO’s invested $18 billion (yes, BILLION!) on raising funds in the last decade.
Stop Giving Away Your Donations
Your organization works really hard to raise money. So why would you give it away to pay for high charity fundraising costs? A simplistic, but effective way to ensure that your organization can end up with more money to fulfill your mission is to find easy ways to cut expenses. For example if you are unable to secure an in-kind donation for your next even, then make sure you are contacting multiple vendors who can compete on price for whatever service or materials you need them to provide.
Another way your organization may be giving away hard earned donation money is overpaying on setup costs, transaction fees, widely varying credit card processing fees and other other hidden charges for most of the popular fundraising platforms including Square and Paypal. Take the same measures you would with your event vendors. Carefully look for platforms that are transparent about all costs and that offer the lowest rates so your nonprofit can keep more money.
Improving Your Organization’s Bottom Line
What if your nonprofit avoid high charity fundraising costs by keeping an additional $4 for every $100 donated? MobileCause cloud based fundraising platform can help you raise more money and instantly help increase your net revenue with zero transaction fees, no hidden costs and at 2.5%, the industry’s lowest credit card fees, for all credit cards. Yes, even American Express.
As a MobileCause client, you will receive dedicated strategy support from fundraising efforts to help you raise more money at a lower cost while saving time and resources. Your organization can be up and running in hours with no technical skills required.