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Does Charities spend too much on administration costs?

A research suggests that people still think charities are spending more than double the acceptable amount on administration costs also think only around a third of income is actually spent on the cause. People think charities spend 37% of their income on administration costs, more than twice the 15% they feel would be acceptable. The public overestimate how much is spent on fundraising and 'admin' and underestimate how much is spent on the cause. The public is much stricter than charities when it comes to defining spending on 'the cause'. To close the gap between public perception and charity reality, charities will have to work much harder if they are. Charities must start talking to donors, volunteers, public to help people understand not only what their money is being spent on, but also why it is money well spent. 65% people see a charity's chief executive as an admin cost and 45% think a director managing several medical research projects is admin, the same as paying volunteer expenses. Read more at: 

 

http://www.marketresearchworld.net/content/view/5807/76/

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