Friday, May 23, 2014

Non-Profits and Money

Some time ago I received a call from a charity telemarketer asking for money. I don't recall the exact charity, however it had the "ring" of a scam. Somewhat out of frustration I asked the fellow, "What percentage of the donation actually gets distributed to the recipients?"

His response: "15%, sir."

Sooo...that would mean that the other 85% goes into the pockets of the telemarketing firm and the "administration" staff of the charity. Wow, that doesn't sound very efficient to me!

This week I received the "Annual Report" from Christian Aid Ministries.
Front Cover
I was again blessed while reviewing the many programs and projects that this organization funds and operates. They do so many things and do it very efficiently, in fact the percentage of expenses used for "administration" purposes is less than 7%. If you include "Gifts in kind" (ie not money) it is less than 3%. This organization handles approximately $96 million per year and keeps their overhead under 10%, that's incredible and responsible.

Here are a few things they do:
  • Billboard evangelism
  • Wheelchairs
  • Disaster relief (cleanup and rebuilding)
  • Micro-finance projects
  • Literature projects
If you would like more information, check them out here: www.christianaidministries.org


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