Charity millions 'go to fundraising companies'

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Posted on August 31st, 2010 by admin

We saw this from BBC’s Newsnight By Meirion Jones on traditional fundraising companies:

” Fees paid to fundraising companies by UK charities for recruiting new donors often effectively wipe out the amount a person gives, Newsnight has learned.

Charities pay tens of millions of pounds every year to subcontracted firms who sign people up to direct debits on the street or doorstep.

But in some cases, it would take the average donor more than a year to cover the fee – the equivalent of about £100.

The companies’ watchdog says the firms provide a good return on investment.

The Disasters Emergency Committee (DEC) appeal for Pakistan is an example of a campaign where donors can be confident that almost all of their donation will go to those affected by the floods and not be swallowed up by marketing costs.

For every pound collected by DEC, 95p is spent on the ground.”

In contrast, TheGivingMachine is a “no fees” fundraising service that enables online consumers to donate for free. For every 100 Givers who join TheGivingMachine, over £400 in donations are generated a year at no extra cost.

See the full article on the BBC Website

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