Charities – Tear Down The Barriers!

In a recent blog posting I commented on “Managing Charity Finances Through Uncertain Times” – a Baker Tilley report on the actions charities were taking to reduce the impact of lower income on their charitable works. Another report has recently revealed how important tackling the costs and the perception of a charity’s efficiency is to actually raising money.

“Philanthropy: Barriers to Giving”, a report commissioned by Barclays Wealth detailed a survey taken of 500 high net worth individuals and their attitudes to philanthropy and how they choose the charities they wish to donate to. Three numbers stand out from the report;

89% feel “efficiency” is the most important factor when choosing which charity to give to.

88% cited the amount spent on administration was a determining factor.

82% said that “charities will be forced to become more efficient as people begin to demand greater efficiency from the causes they give to”.

Putting the two reports together we learn that charities are worried about their levels of income. Donators are concerned that their donations are going to be used efficiently and choose their beneficiaries on that basis. There is a virtuous circle to charities cutting their costs. By cutting your overheads you are in a better position to generate more donations.