Charity Fundraising Costs

As we all know, most charities spend a proportion of their income on generating further income. Also, we are aware that charities cannot spend 100% of their income on fundraising, otherwise they would not be spending any money on their charitable purpose. So there must be a level at which fundraising expenses are acceptable.

However, there are hidden fundraising ‘costs’ that are not on the accounts sheet. For example Christian Aid displays the following figures on their site:
Out of every pound we receive, we spend:
* 52p on long-term development projects
* 17p on responding to emergencies
* 12p on campaigning and education
* 18p on fundraising
* 1p on administration

The unseen item is how much resource do external fundraisers contribute. We can see that Christian Aid spend 18p in the pound on fundraising, but in addition to that we have the time and money that external fundraisers (the people who do sponsored bungee jumps, etc) commit to fundraising for Christian Aid. This time and money only adds to the 18p in the pound fundraising figure above – the money raised is already accounted for in the above figures. So even though these people are acting on behalf of Christian Aid, their expenses (and time) are conveniently off the accounting sheet.

To better appreciate the amount of resource that a charity (including it’s supporters) is actually spending on fundraising you need to estimate the time and money that is off the record.

From the figures available for Christian Aid (for example) it is very difficult to assess this cost as their income stream does not differentiate between income from external fundraisers and income from fundraising where the costs are directly to the Charity itself (e.g. the cost of letters asking for money).

For the estimate it is worth including both the time and money of the external fundraisers (this is what is accounted for if the fundraiser is an employee of the charity, after all). If we monetise the time spent by fundraisers then at a guess I would estimate that the final figures must fall into the range of 20p to 35p in the pound compared to the 18p in the pound published figure.

Please don’t assume that I’m questioning the published figure – I’m not. I’m just trying to add to that figure the fundraising costs that are external to the official Christian Aid organisation as incurred by it’s external fundraisers.

So, if we could actually have a reliable estimate of the true costs of fundraising by charities what would our response be? Charities that spend a large proportion of income on fundraising are criticised for that and they usually attempt to reduce that proportion.

There are probably some charities that have no ‘off account’ expenses for fundraising, but probably also other charities that have no ‘accounted for’ fundraising costs because it’s members freely give of their own time and resources to fundraising (i.e. it is all ‘off account’). Just because they can claim zero pence in the pound fundraising costs does not mean that they (in the larger sense than just the accounted for organisation) has zero fundraising costs – it always costs money to receive money even if it is just to check your bank statement and to write it into the accounts. The time and money of voluntary fundraisers should be taken into account by donors, in just the same way donors are interested in the official figures.

So bear in mind that a charity with a zero fundraising cost may, in this slightly different way of looking at things, actually have a 50% or higher fundraising cost.

Here the Charity Commission states that it will take up complaints where people identify that “fund-raising or administration costs that are excessive”.

Christmas at Greenbelt

Greenbelt did not disappoint. As we had the children with us the festival had a very different spin for me. It was great to see the children get so much out of it, and thanks go out to those who made the festival work so well for families. Stuff like the drumming, statues, artwork, etc around the site was great for us, the shed camera obscurer was fantastic, and Jo as ever loved the sacred space on the top floor of the grandstand. Also the programmed family stuff was great fun, the twist and children’s festival, don’t let the pigeon drive the bus etc.

The one seminar I really wanted to go to I made – Pete Rollins who spoke about faithful betrayal, which was excellent. I recently read his book How not to speak of God which I think is a very important contribution to the current dialogue, I recommend it as the best book I have read for ten years. His talk begins to pilot a theology of redemption as a rupture and gives a great background to some of the issues I raised in the series of post about redefining church, for example see point 4 in this post.

Greenbelt for me is better than a family Christmas, I see so many people I have good relationships with, who I know are on a similar journey. People I now only reconnect with at Greenbelt, but who get me, and as ever the whole festival was a thin place where heaven and earth were a lot closer.

Tithes (and where they go)

Heard someone comment the other day (and I really ought to be able to attribute this to someone, but can’t remember who it was) that in the Old Testament the tithe was for the poor and that somehow the church today has managed to divert it towards other stuff, like expensive buildings etc. This kinds of relates to my finishing paragraph on this post.

It’s not that I think that the tithe is for today anyway (10% seems a bit odd considering our whole lives ought to be a sacrifice), but it was a great comment!!!

Oh, I know, it was Shane Claibourne speaking at Greenbelt.

Exactly Who is Doing the Giving?

Bartley brings up the issue of Government funding the church to carry out welfare services. This is a hot topic for many missions of the church including youthwork.

Whilst there are many considerations around the matter, I would like to merely ask: Who is doing the giving?

This is a hard question, but we all need to be careful that we consider it and are aware of it in our own situations.

As Christians, God has asked us to give our lives, as a sacrifice, to put others first. We show love in what we do, because it is our resource that we are giving.

If I give and in my giving I employ someone else to do the work, is it me who is giving or is it my employee? Well, it is me – surely. Sure, there may be the case where my employee is adding his giving on top of mine, perhaps putting in extra hours. That would be the his giving, not mine.

Our love needs to consist of giving of what we have got. Being a ‘professional Christian’ doesn’t mean that you are giving anything – it is only when you go beyond your job that you are giving, or when you receive ‘tiny pay’ (I knew that there was a good reason for such low pay! 🙂 ) – just the same as a shelf-stacking job down at Tesco’s, it is only when you go beyond the requirements of your job that you begin to give.

(note: how fantastically tax efficient it is to be a low paid youthworker and to make your giving your time rather than your money! Alternatively you could give money, but be taxed on the extra income you would need to receive before giving the money away. There isn’t a rule on this though – we just individually have to know God’s calling, and sometimes that can be to make money, possibly…)

When we think about giving let’s start by looking at what we have to give. It doesn’t need to be ‘silver and gold’ of which you may ‘have none’, but it does need to be something that you have.

Don’t seek merely to be an unloving, ungenerous, ungiving conduity of someone else’s love or giving. Don’t seek to merely be an paid arm of the state, or a paid arm of other Christians.

Sure, join with others who want to give, join with those who want to fund (as long as they have the same ultimate aims and wish to use the same methods as you), but don’t forget where your giving ends and someone else’s giving begins.

Ultimately it is giving what God has freely given us that matters.

Youthwork is a fantastically important thing to be doing – do make sure that the youth can see that you are not just giving other’s resources, but that you are giving your own too. It is that that gives you authenticity.

As an aside, I’ve just come across a case where (non-church) parents were given a letter by the youthwork explaining that as so much money went on upkeep of the church building it would be useful for parents to contribute to the youth activities. I was a bit bemused that the church felt it worth saying that the building was a higher priority than the people and that, whilst the church was willing to spend hundreds of pounds a week on the building, it wasn’t willing to spend a much smaller amount on people…

Reasons for Political Radicalisation of Christians

Reading “Faith and Politics After Christendom” by Jonathan Bartley I’m fascinated by the section where he gives different examples of the action of politically radicalised Christians. It seems common that, as our society ‘descends’ (?) into Post-Christendom and loses many of the laws and cultural norms brought about by Christianity’s involvement in government, Christians decide to take action and do something about it in the political sphere.

Bartley broadly categorises this into positive and negative responses:

  • Where Christians are shocked at moral loosening and wish to reintroduce stricter morals by regulation.
  • Where Christians see injustice and wish to encourage government to ‘do something about it’.

Now, I can see that these two categories do exist (and bear in mind that Barley points out that many people involved in these things will have a broad mix of motive that may include both categories), but I’m not sure that they are as different as they first appear.

Surely they both break down into these aspects:
People are being wronged (maybe they know they are [obvious injustice] or maybe they don’t know that they are [moral damage]) and some Christians, who are politically motivated, want to impose a solution on society (whether it is prohibitive law or ‘positive’ action by the state).

We must surely note that even the more ‘positive’ of these two categories does include the taking or diminishing of resources from some people (perhaps taxation) and applying those resources to people as the radicalised group sees fit. A bit of spin and the opportunity to tell people how wonderful this piece of justice is (justice that we as Christians are called to practice in our lives) can promote the action in a positive light, but we also must remember that it is reliant on the backbone of the law, reliant on the ability to control people with the ultimate resort to violence.

Now, if you don’t believe my last point then note this example: A man chooses not to pay his taxes. By law the people (the state) dictate that people pay their taxes. Does this man get to keep his freedom? No, he is put in prison. What stops him continuing to exercise his freedom? The fact that if he were to try to do so people would stop him. Ultimately society is able to restrain, and if necessary be violent against that person in order to force that person to either cooperate or to accept punishment.

So, in my mind, both these categories of radicalised action fall into the trap of trying to control others, rather than trying to be an example to others and trying to love others (without at the same time trying to control others). I don’t yet know what Bartley’s tack on this is, but I look forward to reading on!!!

Are Non-Christians Better at Government

I’ve just started reading the third book in the “Church after Christendom” series:
Faith and Politics After Christendom – The Church as a Movement for Anarchy
by Jonathan Bartley
Without doubt it will inspire me to a few posts over the next week or so, as I read it.

Anyway, to kick off, how about the suggestion that Christians don’t make good governors in this world…

We read in the Bible that God appoints all governments (Rom 13:1). Now to my mind there isn’t a government that doesn’t indulge in a little violence and control (after all, a govt that didn’t wouldn’t be a govt for long!). Bear in mind, this is at the request of the people – after all, if ‘we’ pay taxes, then we’re sure going to make sure that everyone else does too!

At this stage in my reading of the book we see the view (common in the early church) that we are not here to exercise control over people and see to it that criminals are punished.

I tend to agree with that broad perspective – which implies that non-Christians, with less concerns in this area, are very likely to make better governments in secular society.

You may have noticed this tendency in my thinking before

Friends, holiday, and work

Back to work today after two weeks off. We started our holiday in Morcambe as I was doing a Detached training session two weeks ago in Lancaster. The day went well and it reminded me how great committed volunteers can be. I am sure they will establish a strong project.

Three days in Morcombe then across to Doncaster (we know how to holiday!) to see my brother and down to leicestershire for more family. Where we went to Wickstead park and the children went on their first roller coaster. We also bumped into old friends from Brum.

Then a week at home finishing with Lori’s 30ith birthday bash. We had friends come from Birmingham, Cardiff, Cheltenham, Epsom and Nottingham as well as good turn out from locals. It was great so many made the journey and although at times we feel quite isolated here in Somerset I am grateful to have such good friends THANKS to those who made it and those who couldn’t (many of whom I hope to catch up with at the usual trip to Greenbelt). The planned extension to the house is progressing so hopefully by Christmas we will have enough room for people to stay.

Back to work with a bang, but I still have some TOIL (time off in leiu) to take so plan to try and catch up on work but take some more time off around Greenbelt.

Insomnia

Sleep seems to be evading me once again. The last few weeks insomnia has been particularly bad. My usual problem is going to bed and sleeping for 2-6 minutes then waking for a couple hours but this has changed to sleeping for maybe 2 hours to then waking for several. Back to the sleep re-conditioning where if I am not asleep within ten minutes I have to get up so I condition my mind into associating the bedroom with sleep only. Sometimes this takes a few weeks of disciplined work but usually works in the end.

Extended Schools

There has been a lot of questions around extended schools, and the opportunities for the volunatry sector. It is one of those discussions that will have whole lot of issues either way. Mark sent me the following quote which raises some of the questions well.

“Not all of this is bad, it says, but the underlying ‘deal’ is
unhealthy. It solves the churches’ loss of identity and role by making
them surrogates for the government (with resulting clashes over human
rights and fairness) and it allows the government to ‘contract out’
welfare provision without addressing underlying questions of injustice
and the rich-poor divide.”

However my general feeling is that extended schools is the first part of a shifting culture towards more voluntary involvement and ownership. The pro’s and con’s of this are debatable but in all probabilty the shift will continue and extended schools is happening already. Therefore we need to consider the challange and recognise the responsibility. If the voluntary sector does not engage I could easily see private enterprise moving in. In the past the christian voluntary sector has been slow to respond and missed opportunities. There is a question about how we engage and promoting good youth work and christian values as part of engagement?

If you want more information on extended schools try a couple of these links:
Schools Training and Development website A good outline that takes you through all the key areas.
NYA Briefing Part of their series looking at various policies with helpful guidance for youth work organisations that what to position themselves for extended provision
Third Sector is short hand for a lot of the direction the government are heading, and their desire to see the voluntarty sector get on board. Check out here for a Speech by Phil Woolas MP to the Association of Chief Executives of Voluntary Organisations (ACEVO) on 22 June 2006 titled FRAMEWORK FOR STRENGTHENING THE THIRD SECTOR’S ROLE IN LOCAL PUBLIC SERVICE DELIVERY.

One response is here for a critque from the guardian