Monday, December 17, 2012

Lack of openness in running of charities deters potential donors says survey

Charities are complaining of falling donations — and recent research shows that a lack of transparency in the running of charities, a perception that too little money actually going to the cause and too much money going on staff salaries are making people less likely to give.

A survey by not-for-profit sector consultancy nfpSynergy prompted Joe Saxton, its Driver of Ideas, to comment “We recently called for an easy way to find out how much of their income charities spend on what they’re fighting and campaigning for. If charities want to increase donations and maintain the donors they already have, action should be taken - and quickly.

“The evidence is clear; people want to know how their donations are spent. Charities should sing from the rooftops about how they spend their money. It’s time the sector stopped huffing and puffing and bit the bullet”.

The poll found that 61% of people said that too little money going to the cause was stopping donating... the third-year-running that this has been the top choice.

Half of people questioned would be put off by “not being clear how donations are spent”, while 47% said they would hold back their donation if “too much was spent on staff salaries.”

The research, based on a survey of 1031 British adults, also revealed that the method of fundraising also features prominently in people’s reluctance to give. Nearly half (43%) said they wouldn’t want to donate if fundraisers were “too persistent” and a third (34%) keep hold of their money if fundraising methods are “too intrusive”.

The study also shows a split in whether people think charities should save for the future. Just over half (51%) thought charities should spend as much of their donation as possible on this year’s need, but 43% were happy to see more spent on fundraising if it would increase future income.


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