Reports, Studies & Surveys
Investing in the Charity of Your Choice
The accountability of organizations to their constituents throughout North America has become one of the most important aspects of good governance in both the not-for-profit voluntary and private sectors of our economy. In the charitable sector the importance of accountability has created a focus on the effectiveness and efficiency of funds raised. The media has contributed to this focus through well intended reports primarily related to informing the public about fundraising costs that are often oversimplified. The purpose of this position paper is to provide a broad overview and perspective that donors and charities should take into consideration to evaluate giving and fundraising effectiveness.
There is great public interest in charitable organizations' fundraising costs. Reports on costs tend to focus on cost ratios (fundraising costs as a percentage of funds raised). Critics contend that reporting cost ratios is too simplistic to be meaningful in comparing organizations that may have very different circumstances.