How Much Does That Cost?

How much do you spend on administration?

You know the question, you have possibly asked it before. How much of a donation to a charity gets spent on the programs and how much gets spent on staff and other back end costs. It’s a question I hear frequently about the organisation I work for and for every other not for profit in existence. It’s an important question because we need to be open about this, but it can’t be the only question we ask.

A colleague of mine, many years ago would ask people if they were needing life saving surgery would the most important question to the surgeon be about how much they charged or would it be about their success rate? Of course the response was that the success rate was the main thing people are interested in.

There are many organisations that people donate to that are quite literally saving lives around the world and how often do we ask about the success rate they have?

There needs to be a balance between the two, naturally, but the success rate should be just as, if not more important, than the administration rate.

Effectiveness in the work a not for profit does is not just about keeping costs low, it’s about having the greatest positive impact on our world.