Have you ever made a donation and wondered where your money went? How much of your actual contribution made it to where you wanted it to be spent? The typical average breakdown for charities is as follows:
75% goes to the program
15% is used for administrative activities
10% goes to support fundraising activities
Administrative costs can include
- Human Resources and Accounting staff
- Portions of Director and employees salary
- Information technologies dedicated to infrastructure and operations
- Production of annual report
- Office Supplies
- Building utilities
- Legal Services
- Board of Director expenses
Another source seems to indicate that only about 10% is used to support administrative activities and fundraising. This is an excellent report with lots of information on charities and Canadian donating trends.
Source: The Giving Report 2020
After reviewing this information we decided not to register as a charity. There are two main reasons for this:
1. Current Covid-19 donations are time sensitive and the process of establishing a charity can be complicated and time consuming
2. Additional administrative actions are necessary such as establishing a Board of Directors, producing annual reports, rental space/utilities for the business, etc. This adds another level of red tape that impacts our ability to get the product to the consumer.
In the end we would like to think that we are creating a new form of support for Frontline Healthcare Workers. One of our main objectives is to find a way to advise those that have purchased signs where their money went and how it helped those frontline workers.
Many people give to charities in lump sums and do not invest in small operations like ours. We only ask that those who can afford a sign consider supporting our cause. Remember that you will ultimately know how your $10 per sign was spent and how it helped frontline staff.