How Much Money Actually Goes To A Charity
With the holiday season upon the states, many people will be digging deep to make a donation to their favourite charity.
But how much of your hard-earned cash really goes directly towards proficient causes? The Week looks at the latest figures.
Which charities are well-nigh popular?
More than £10bn was donated in the UK last twelvemonth, co-ordinate to an annual study from the Charities Aid Foundation (CAF).
Medical research was the well-nigh popular crusade, with 26% of donors interviewed by the foundation saying they had given money to charities such cancer research in the previous four weeks. Animal welfare charities were another favourite, receiving donations from 24% of those surveyed.
Proving nigh as popular were charities supporting children or immature people; those that raise money for hospitals and hospices; and fundraisers for overseas aid and disaster relief. Each of these three causes received cash from 23% of respondents.
Meanwhile, polling by YouGov suggests the ten most popular private charities in the UK are:
1. British Heart Foundation
two. St John Ambulance
3. Macmillan Cancer Support
4. Cancer Enquiry UK
v. Groovy Ormond Street Infirmary
vi. Marie Curie
vii. Keep Britain Tidy
8. Alzheimer'due south Research United kingdom of great britain and northern ireland
ix. Guide Dogs
10. RNLI Lifeboats
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How do these groups spend donations?
Fundraising website and directory Charity Selection lists all registered charities in the Great britain and allows donors to encounter exactly how each pound they give is used.
"People are oftentimes sceptical about how charities spend their coin and how much of the total donations are really used for charitable work," Charity Choice boss Polly Avgherinos told The Daily Telegraph. "But it's a myth that nigh of the money is used internally or that much of it is wasted."
The organisation uses charities' own annual accounts to compile reports, and explains its full methodology on its website.
Here are the 10 most popular charities, ranked in order of how much of each £1 they spend goes on charitable activities:
St. John Ambulance: for every £i spent, 87.3p goes on charitable activities, 10p is spent on fundraising, and ii.7p is spent on generating income.
Macmillan Cancer Support: 73p charitable activities, 24.4p fundraising, and two.6p generating income.
Alzheimer's Research United kingdom: 66.1p charitable activities, 33.9p fundraising, and 0p generating income.
Marie Curie: 63p charitable activities, 27.9p fundraising, and nine.1p generating income.
Cancer Research UK: 60.7p charitable activities, 24p on fundraising, and 15.3p generating income.
Guide Dogs: 56p charitable activities, forty.2p fundraising, and 3.8p generating income.
British Heart Foundation: 26.2p charitable activities, 40.6p fundraising, and 33.2p generating income.
Slap-up Ormond Street Hospital: no study available.
Continue United kingdom of great britain and northern ireland Tidy: no report available.
RNLI Lifeboats: no study available.
Does this thing?
Although it is vital that charities are honest and transparent nigh their accounts, many industry experts argue that such organisations shouldn't be judged on their admin or fundraising costs solitary.
"Large or complex charities often need administrative back up to ensure the charity is well run and spends money wisely," Jane Hobson, head of policy at the Clemency Commission, told This is Money.
"Yous would not expect to find null fundraising or administration costs except where the clemency is very minor-scale and run exclusively by volunteers. Every bit, it would demand a very proficient reason for fundraising or administrative costs to take upward more than half of the charity's yearly income," she says.
That view is shared by Helena Wilkinson, head of charities and not-for-profits at accountancy house Price Bailey LLP.
"The myth that charities can operate with zero overheads is utterly misleading and creates the illusion in the public's mind – and information technology damages the rest of the charity sector," she writes in an article for The Guardian.
What's the consensus?
The about popular charities in the United kingdom spend anything between 26.2% and 87.3% of their yearly income on charitable causes, according to the best available data.
Still, experts circumspection that larger charities should not exist penalised for having meaning running costs, as they cannot operate finer without practiced management and fundraising efforts.
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Source: https://www.theweek.co.uk/fact-check/98581/fact-check-how-do-charities-spend-your-money
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