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Wednesday, 13 December, 2000, 11:18 GMT
How are charities spending your money?
![]() A UK children's charity has come under fire for spending more on advertising and administration than directly on children's services.
But the National Society for the Prevention of Cruelty to Children (NSPCC) said their advertising campaign was as important to their aims as providing services for children at risk. If you are an NSPCC donor, do you agree with that? If you support other charities, do you have any idea of how your money is spent? Are charities and other non-governmental organisations transparent enough on how they spend your money? Or are tighter controls needed? This Talking Point is now closed. A selection of your e-mails are posted below. The campaign has not only generated donations but has I am one of the many who responded to the Full Stop advertising campaign. I now give the NSPCC money each month as a direct result of those harrowing images on TV and in the press. The campaign has not only generated donations but has raised the public's consciousness. This surely can't be a bad thing. HB, UK
From what I've seen they spend the
majority of the cash the get on
flash cars, subsidised mortgages
for their staff and champagne
"promotional" parties.
Can we put this in perspective? Coca Cola spends over a billion dollars a year on advertising, but would anyone claim they have no right to? Or would anyone say it's right that this much should be spent trying to get us to buy overpriced fizzy water, but not this much spent protecting children?
I work very hard for pretty much nothing for a major children's charity, and would like to know how to get on this supposed gravy train, as no one here has ever seen it!
KS, UK
It really annoys me that when I give to charities that a large amount is used for administration or advertisements and not given straight to the cause. Of course you need some sort of advertisement but not to the extent that it is used today. What percentage actually goes to the cause? That's what concerns me.
The NSPCC stops abuse by highlighting it to the public and by direct action from donations. In my mind, they do nothing wrong, every penny they spend reinforces their philosophy so please keep up the good work.
As one of those "hidden" victims many years ago, I think my abusers would have thought twice if they thought that, if revealed, the consequences of their actions would have been acute societal condemnation. What the neighbours think can be a powerful weapon in dictating and regulating acceptable moral or immoral behaviour.
I think that the NSPCC are right in using a large proportion of this money for advertising. These charities need to raise awareness of their work otherwise there is no point in them trying to tackle the problems of this world. This publicity is hard hitting, and even if has only made one person tell someone they are being abused then its worth it. Just remember you can't put a price on a life.
The NSPCC stops abuse by highlighting it to the public and by direct action from donations. In my mind, they do nothing wrong, every penny they spend reinforces their philosophy so please keep up the good work.
VL, UK
Students at the United World College of South East Asia, at which I teach, support 27 carefully identified charities/ NGOs. These are identified by the students themselves. We have found that good money follows good causes and always adhere to the principle that one must help those in need to help themselves. Without empowerment the problems remain and the prevention/ cure is not addressed, relief is merely given.
Steve Cottam, England
Why is anyone surprised
by this? We live in
an age where everyone
denounces corporations
for working for "profit".
Didn't it occur
to them that charities
can use their money to
benefit themselves?
We all give to charities whether we know it or not. Part of our taxes go to several UN Programmes and you want to see how much they spend on administration.
Laura Sterling, UK
For too long, abuse and cruelty to children has been brushed under the carpet. The NSPCC should be congratulated on their high profile campaign to bring awareness to the public. Some 'dirty little secrets' shouldn't be secret anymore and if that takes a large amount of money, so be it.
It doesn't matter what is spent on administration by a charity, what matters is that charity's performance in meeting its objectives. The NSPCC's Full Stop campaign aims to 'end child cruelty in a generation'. A very laudable aim, but does anyone think it's actually achievable? And will the NSPCC come back in 15 or 20 years and tell the world how they've performed in meeting that objective? I doubt it - they'll be spending millions on some new campaign instead.
If I invest in a company, it's easy to find out basic statistics - profit, turnover etc. Where can I find this out for charities? It's not on the Charity Commission website.
Why be less rigorous when investing in charities than stocks?
Phil Redding, UK
Having seen the charities operating in Kosovo during the initial deployment of British troops to the area, the only thing of any note about their performance was how smart they looked in their fleets of shiny new off-roaders yet how inept ALL the major charities were. Their open contempt for the military throughout the campaign was very ironic, seeing as if it were not for the military these 'organisations' would have had no passage into the country where they would not have been witness to the army doing their job for them. Charity, no thanks, my money stays at home.
We need to be clear about the role of charities. If they are simply operational, they are compensating for a lack of government action. The main role of a charity ought to be to keep up pressure for positive change. Advocacy - in all its forms - is the way to change the policies of governments, globalised industries, etc. And if advertising is perceived to be the best way to bring this pressure to bear, then so be it. Advocacy promotes ownership.
Selva Appasawmy, Mauritius
Anybody who solicits me for a charitable contribution must demonstrate to me that they spend no more than 10% of their total revenues on "overhead" ... you'd be amazed how many telephone calls terminate immediately upon such a request! And, I want to see audited statements, not just someone's word!
Syed Saleem Shahzad, Pakistan
I have spent the last nine years working as a fundraiser and would be the first to defend charities that employ qualified and proficient fundraising staff - the money spent on such professionals normally brings in much more in return to be spent on the "cause", so it's a good investment of donor's money. BUT, I was always outraged by the extravagant use of resources by the NSPCC in its Full Stop appeal, which has now been underlined by today's news. Shame on you NSPCC for tarnishing the reputation of other organizations; I hope you have learned your lesson, and now get back to what you normally do so well - putting the needs of children first.
I feel very strongly on this subject having been involved for 35 years in charity work. A good and worthy cause starts up - the work done all by volunteers - as it grows, the tide of work gets beyond the volunteers. Staff is hired - usually, initially at modest rates. The charity continues to grow - so do the salaries, the buildings and other administrative costs. An executive director I hired 30+ years ago for $10,000 a year now commands 8 or more times as much). "Empire building" comes in to play just as in the Civil Service, because, as there, there are no incentives, just a flat salary - graded to how many people you can push in the pyramid beneath you. A previous writer said, and I concur, that Government is responsible - but is generally irresponsible in what is relatively an affluent world. The charities are needed - badly needed - but their present structures do not permit the best flow of the money available to the end cause.
People who work for charities, in my experience, are honest and dedicated people. I'm sure the NSPCC spent the money they raised as wisely as they could, and who are we to tell them they are wrong? The full stop campaign did a lot to raise awareness even if it did not lead to a massive increase in donations. Perhaps charities should be allowed a certain amount of free space on the BBC or advertising companies should get tax relief if they donate services to charity.
Everyone thought the lottery was a major new source of charitable funds. But most of its income is from the less well off, it's probably led to a cut in donations to charities, loads of its income goes in expenses, profits and tax and much of its so called charitable giving is to projects such as the Dome or others where government should be providing the funds out of taxation.
I don't give to charities or street beggars any more. Why? Well, the money does not seem to be getting where it is meant to be, whether it is the NSPCC spending more on itself than needy children or foreign aid/Oxfam donations ending up in the pockets of corrupt Third World officials. As for the so-called homeless, well I pay very large amounts of tax and NI to help run the most generous welfare system in the world. Take note Tony and Gordon, if you rob my pocket any more to pay for your socialist Utopia this tax-payer will leave for a kinder economic climate.
Charities should be given certain services free, for example post and advertising (TV, radio and print). Large accountancy firms should audit them for free to ensure that donations are going where we want them to go (with a little free good will advertising).
Charities and similar NGOs have become businesses in their own right. They depend on giving potential "customers" a continuous diet of tragedies (perceived or actual), in order to keep their cash-flow going... some of us have started to see through the hype though.
I think the law as it stands means that 99% of contributions can be lost in administration etc. This is wrong, charities are interest groups now, not people with causes.
Ali, London, UK
In a recent radio interview a senior executive from the Cats Protection League stated that nearly 95% of their income was spent helping cats with only around 5% being spent on administration. Perhaps the NSPCC should take a lesson from this and spend their income helping children and not on lining the pockets of the advertising industry.
Staff are expensive; advertising is even more expensive; and people are reluctant to part with their money even for charitable causes. Putting these factors together means that it can cost more to persuade someone to give than they actually give. But without the work of charities none of that money would go to the causes the charities represent. After all if the government did their job properly most of the support network provided by charities wouldn't be needed.
The Red Cross ran a campaign this year on TV about Africa. I recently found out that only a very tiny percentage of their funds goes overseas. Could they fall foul of the advertising standards authority? Should they declare on the advert what percentage of their income is sent to the particular cause featured in the advert?
Caron, England
The majority of those who work for NGOs in India are more money-minded and less service-minded. Those who were penniless have become rich after starting NGOs or becoming employees of NGOs. Those who are really service-minded get frustrated for they are not able to achieve their goal.
I have great regards for Sisters of Charity, the congregation started by late Mother Teresa, who serve in different parts of the world without publishing their noble work. They are simple and really committed. They are role models for those who are in this field.
With so many charities and fewer people giving services for free this
might be the charity surviving in the complex media world. They have
definitely got their message across even if it is though negative publicity. Perhaps companies and the public are to blame for this in that they don't give more services for free. Who exactly is
receiving this money?
Most people understand today that not all money given to charities goes to the cause. It is important that charities are clear and
accountable to this. The choice is the givers, I don't think it is scandalous.
I figured that the NSPCC spent a good deal of the money I donated in letters (with complimentary pen) to ask for more money. The best advertisement a charity can have comes from using donations to actually do some good.
It's easy to snipe at the NSPCC over this. But this is wrong. Many people have joined the FULL STOP campaign as a direct result of the advertising. The NSPCC's aim is to close when it isn't needed, lets help close it.
James Gaerne, Kenya
I think some of the criticism is as a result of the adverts daring to show the truth that the majority of domestic violence is mother to child. Doesn't fit in with the PC age, you know.
Andrew Reid, London
The NSPCC should use their funds to help the children affected by cruelty, instead of lecturing people about cruelty. Surely the Government should be doing that?
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