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Charities in New Zealand

Our guide explains the typical costs of a charity, shortlists those who make your donations go further, and answers must-know questions about charities in general.

Updated 30 August 2022

Summary
  • Whether you're looking to give back to the local community, support great causes or capture tax credits, investing your time and money into charities is arguably one of the most impactful way to help.
  • There are over 28,000 registered charities in New Zealand, all focusing on various areas that are constantly in need of extra assistance or additional funds to continue executing their mission.
  • However, charities have been a point of uncertainty for many - a huge portion of the money donated can end up paying for the cost of fundraising, with next to nothing getting sent to the people that need it most. Anyone donating wants to ensure that their money is going as far as possible and having the biggest impact. 
  • This guide explains why a charity needs to spend money on fundraising, what typical costs are associated with charities, and lists ten charities (as an example) of those with efficient administration costs relative to their programmes and initiatives.
  • If you prefer to contribute to a number of charities but don't know where to start, there are organisations which vet charities and allow you to contribute to many good causes all at once. Examples include the One Percent Collective and Effective Altruism, among others.

Our guide covers:

Know This First: Why do charities spend a lot on fundraising?

  • ​One of the key elements of running a charity is fundraising. Without fundraising, the charity severely limits its funding, which means less impact on the community or people the charity targets.
  • Having a steady stream of new donors is key to increasing the impact of charities.
  • However, in a world with so many great causes and choices, keeping a charity at the front of mind for many New Zealanders requires many branding, marketing and customer touchpoints. This means fundraising and marketing efforts are a 'standard' expense of most charities to ensure the organisation is sustainable and the work can continue to be done.

MoneyHub Founder Christopher Walsh shares his views on charities, donations, fundraising costs and what you need to know:

"The reality is simple - charities need to spend some of the money you donate to fundraise as part of their everyday activity. It's not uncommon to make a donation and wonder how much of it will reach the intended causes, especially if you see big adverts for charities in the paper and on TV. However, New Zealand has over 28,000 charities, so it's a competitive space. The fundraising efforts are essential to make you and others aware of the charity's work (and it's need for funding) even if it's arguably an expensive exercise".

"My favourite charities are the ones who take a regular amount of money per month, send an automatic receipt and spend your money on making a difference with as little overhead as possible. These include food banks, poverty action groups, overseas NGOs giving education and healthcare to children, and similar. However, many worthy causes added to Givealittle also deserve support, along with many others beyond that".

"Whatever you decide to do, this guide is designed to give you the tools to understand every charity's financial reports, ask the questions that matter and know what the answers mean. The useful Citizens Advice Bureau also address this concern here".

"Remember, anyone donating to New Zealand charities can receive a tax credit of 33.33% on their tax returns. This tax credit effectively gives you a third of the donation amount as a reduction in taxes. The IRD makes it very easy to claim a tax refund for donations - visit their refund guidance here".

"New Zealanders are wonderfully charitable, and I look forward to growing this guide throughout the years as we add more information about charities and reporting insights and tips".
MoneyHub Founder
Christopher Walsh

Understanding the Typical Costs of a Charity

Some of the typical costs a charity needs to pay includes:
  • Paying full-time employees of the charity or employees of the fundraising company that makes outbound inquiries
  • Auditing, administration and compliance fees
  • General overhead expenses such as corporate office leases, stationery or marketing materials
  • Sales and marketing costs such as digital, print or radio advertising

What are some common costs that charities have when it comes to fundraising?

Fundraising activities are one of the most popular forms of outreach for charities. We’ve included the main fundraising costs that charities have below to help explain what percentage(s) of money donated may be spent on fundraising. 

However, note that the below costs are not inclusive and are general estimates of the costs that charities have as a proportion of the total donation value.
  • Fundraising campaigns: 5% - 10% of the total donation value
  • Trusts and foundations (grants): 20% of the total donation value
  • Special/unique fundraising events: 25% of the total donation value
  • Digital marketing: 5% - 30% depending on the type of charity and route to fundraising
  • Face-to-face fundraising: 25% of the total donation value
  • Telemarketing or mail or TV: 1% - 2% of the total donation value

Understanding the financials of a charity

Our video below outlines how to read a charity's annual report to understand how money is raised, where it goes and what you need to know:

A Selection of Low Administration Cost Charities Operating in New Zealand

It's important to note that this list isn't exhaustive; we've based our selection criteria on the charities making the biggest impact whilst keeping their cost base as low as possible (we target a net donation amount after considering administration fees of greater than 70%). However, this is merely a sample. In other words, around $70 of every $100 donation goes directly to the people or community the charity targets.

Important: We plan to add to this list progressively. The exclusion of a charity does not infer it is spending more than 30% on fundraising; there are over 28,000 charities in New Zealand, and our list below is a small fraction. The list's purpose is to help you understand what to look for when donating to a good cause and questions you may want to ask.
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Here are selected charities and non-profits that we have analysed (in no particular order):

Givealittle (platform)

Givealittle is a non-profit online fundraising platform founded in New Zealand for all New Zealanders. Since 2008, Givealittle has connected generous New Zealand donors with needy people and organisations doing good in the community. Givealittle is passionate about connecting New Zealand causes with beneficent donors and giving fundraisers the equipment they want to succeed.

Givealittle has a lean full-time team headquartered in Auckland. Givealittle operated as a subsidiary of the Spark Foundation from 2012 to 2019 before the Perpetual Guardian acquired them in early 2020. As of 2022, the Perpetual Guardian continues to support givealittle's operations.

Givealittle charges a 5% flat fee (inclusive of the 15% goods and services tax) depending on the number of funds raised per campaign. The 5% fee is deducted at the time of payment. The 5% fee mainly covers Givealittle's core expenses such as payment processing, website hosting charges, website development and compliance. The fee ensures that Givealittle continues to be sustainable as a charity whilst pursuing its long-term goal of supporting New Zealanders in need.

Know This: Donors don't pay any fees initially. However, Givealittle will take 5% of the total money raised. So from a holistic viewpoint, 5% of your donation will go to Givealittle's administration costs. Givealittle listings rarely have overhead - the purpose is to donate 100% of the proceeds to the cause.
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Financials: Givealittle also has a voluntary "top-up" donation option directly attributable to the 5% flat fee. Givealittle does not take any additional fees from this additional donation. For example, if you donate $100 to a Givalittle cause, the fundraiser would receive $95 due to the flat 5% fee ($5). However, adding a $5 top-up would mean that your top-up donation would cover the fees related to the $100 donation, so $100 the fundraiser would receive the full $100. So, in a sense, a "top-up" donation pays directly for the Givealittle fees, and the whole of your original donation goes towards the fundraiser's cause.

UNICEF

The United Nations Children's Fund (known as UNICEF) is an entity tied to the United Nations in charge of humanitarian aid to children worldwide. UNICEF is one of the world's largest and most recognisable social welfare agencies, with a presence in 192 international locations. UNICEF's mission emphasises growing community-level offerings to promote children's general health and wellbeing.

UNICEF's main activities encompass many different programmes, including:
  • imparting immunisations and ailment prevention
  • administering cure for youngsters and mothers with HIV
  • improving childhood and maternal nutrition
  • enhancing sanitation
  • merchandising education
  • presenting emergency alleviation in response to disasters

Financials: UNICEF's main source of income is voluntary contributions from government bodies and donors. Globally, the charity had an income of around $7 billion in 2020. Of this income, the public-sector government contributions contributed around $5.5 billion. UNICEF's budgeting approach uses low-cost, effective solutions to maximise impact. For a more specific and detailed breakdown of costs, check out UNICEF New Zealand's annual reports here.

As a rough breakdown of UNICEF New Zealand’s cost structure:
  • 65% of funds raised go towards program costs supporting initiatives to improve children's welfare, including community education, long-term development and emergency response work across domestic and international programs.
  • 25% of funds raised went to investing in New Zealand fundraising and communications activities to encourage more people to support needy children.
  • Around 10% of funds raised are spent on administration and compliance costs for the UNICEF New Zealand division.

KidsCan

The KidsCan Charitable Trust (known as KidsCan) is a New Zealand charitable trust established in 2005. KidsCan works to support the New Zealand kids living in poverty through a varied range of programmes. The charity runs various programmes such as: In Our Backyard, Food for Kids, Shoes for Kids, Raincoats for Kids, Warm Kids Cool Kids and Health for Kids.

Financials: KidsCan prides itself on its transparency and efficiency. KidsCan's approach to spending is to keep costs as low as possible. Generally, at least 80% of donations go directly to programmes supporting New Zealand kids. The remaining 20% goes towards the operations that enable KidsCan to run the programmes supporting New Zealand children in need. For a more specific and detailed breakdown of costs, check out KidsCan's annual report here.

The breakdown of how they spend their income includes:
  • 83% of funds raised go towards program costs that support initiatives to improve the welfare of New Zealand kids.
  • 13% of funds raised went to covering the fundraising, financing and marketing costs associated with activities to encourage more people to support children in need.

Childfund

ChildFund is a global child-focused organisation that assists young children in poverty. ChildFund's headquarters are located in Richmond, Virginia, United States. The funding from ChildFund is primarily through individual donor contributors who contribute money monthly to sponsor children in need. The money from sponsorships is a mix of targeted support to children and broad financial aid to their communities.

ChildFund encourages sponsors to correspond with teenagers through their digital correspondence form. Donors that are sponsoring teenagers can connect with them through letters. The letters are translated with the aid of representatives of Childfund. Donors get updates on their sponsors through annual development reviews and up-to-date photos of their children. Sponsors can choose to meet their sponsored child after undertaking a background check.

Childfund develops its packages specifically based on what the relevant community needs. However, common initiatives include early childhood development programs, fitness care, and easy water and vitamin support access.

In addition, ChildFund receives deliveries and donations that assist with:
  • educational training
  • literacy
  • nutrient-rich food
  • instructional programs
  • early childhood development
  • fitness and immunisation programs
  • dietary programs
  • water and sanitation development

Financials: Childfund has a relatively reasonable expense ratio relative to the number of donations coming in. Generally, around 70% of donations sent to Childfund go directly towards supporting programmes that assist children in need. In addition, 25% goes towards administration and fundraising costs that enable Childfund to run their initiatives for kids. The remaining 5% is usually saved as a surplus for future years when donations may be lower. For a more specific and detailed breakdown of costs, check out the Childfund annual reports here.

The breakdown of how they spend their income includes:
  • 70% of funds raised go towards program costs that support initiatives to improve the welfare of children.
  • 25% of funds raised went to covering the administration, fundraising, financing and marketing costs associated with activities to encourage more people to support children in need.
  • 5% of funds raised are spent on operating expenses for the Childfund New Zealand division.

Whānau Āwhina Plunket

Whānau Āwhina Plunket (registered as the Royal New Zealand Plunket Trust) is Aotearoa New Zealand’s largest provider of free services to tamariki under five, supporting child wellbeing and development in the early years.  
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Whānau Āwhina Plunket provides:
  • Well Child Tamariki Ora services, with Plunket nurses and health workers seeing eight out of 10 new pēpi in their homes and in their communities
  • PlunketLine, a free, 24/7 parent helpline staffed by registered nurses and available to all whānau
  • a range of community services including playgroups, parent education, B4 School Checks, injury prevention and kaupapa Māori antenatal wānanga to support children and whānau
There are Plunket clinics, centres and facilities located throughout New Zealand.

In addition to funding from the Ministry of Health Manatū Hauora, Plunket's services are funded through fundraising, partnerships and community grants. Because of the high costs associated with leasing Plunket centres, hiring staff to support programmes and advising parents on their children's growth and wellbeing, the expense ratio relative to donations coming in is quite high. Much of Plunket's work is organised with the aid of New Zealand volunteers that give their time to support the cause. A significant portion of Plunket's money is from wills and foundations set up to pay out contractual income to Plunket each year. For a more specific and detailed breakdown of costs, check out Plunket’s annual reports.

Financials: Regarding costs, unlike most of the other charities on this list, Plunket has a fixed amount of money they need to run their operations. Most costs go towards hiring the people running the Plunket centres. Specifically:
  • Plunket needs roughly $100 million each year to run, and around $93 million comes from contractual income (such as money from wills, trusts, foundations and the New Zealand government). In addition, roughly $7 million comes through donations, sponsorships and grants.

  • Financials from the 2022 annual report show Plunket brought in around $96 million in total income and paid out around $71 million to employees that run the Plunket centres and operations facilities.

  • Plunket has roughly 20% of its total income as service delivery costs (excluding employee costs).

Oxfam

Oxfam is a British-based charity focusing on the alleviation of poverty globally. Its main “branch” is known as Oxfam International. Oxfam New Zealand is the New Zealand branch and affiliate of Oxfam International. Oxfam New Zealand is additionally accountable for handing over Cyclone comfort in various international locations in the Pacific region.

Oxfam New Zealand can conduct operations through the generous support of volunteers, interns, full-time staff, board advisors and remote workers. Most of the Oxfam team is primarily based in Auckland, but they have an additional operation in Wellington. Most of Oxfam New Zealand's money comes from donations, supplemented by the New Zealand government.

Financials: Oxfam New Zealand has relatively reasonable fundraising costs relative to the number of donations coming in. From the most recent annual report, over $4 million came from donations. Another $4 million came from institutional contracts (such as the New Zealand government). All-in, Oxfam New Zealand had almost $11 million of income in 2021. However, Oxfam had expenses of just under $10 million. Of this total expenditure, around $2.5 million was on fundraising activities. In addition, Oxfam spent around $500,000 on operations costs. In other words, the breakdown of how they spend their income includes:
  • 70% of funds raised go towards program costs that support initiatives to alleviate poverty.
  • 25% of funds raised went to cover the costs of fundraising
  • 5% of funds are spent on operating expenses to cover Oxfam New Zealand's overheads.
  • For a more specific and detailed breakdown of costs, check out Oxfam's annual reports here.

Greenpeace

Greenpeace is a global organisation operating in over fifty-five countries throughout Europe, America, Africa and Asia-Pacific. Greenpeace International (the main entity) is based in Amsterdam. Greenpeace's mission is to ensure the Earth is nurtured and supported in the best way possible. Greenpeace mainly focuses on campaigning against actions made by corporations that adversely impact the environment, such as deforestation, overfishing, business whaling, genetic engineering, and anti-nuclear topics. Generally, Greenpeace utilises non-violent protests, lobbying and research to attain its goals.

Due to the potential conflict of interest, Greenpeace does not accept funding from governments, corporations, or political parties. Instead, Greenpeace's main source of income comes from donations by individuals (who generally donate smaller amounts and are less expensive to fund fundraising activities for) and grants. Greenpeace pioneered face-to-face fundraising, where fundraisers actively searched for new supporters in public. Many fundraising efforts focus on monthly donation subscriptions.

Financials: Donations from foundations may be accepted unless the foundations set out unreasonable conditions, restrictions or constraints on things Greenpeace must do with the donation that would compromise the organisation's independence. As of 2021, Greenpeace had the following income breakdown:
  • Around $11 million in income ($9 million from donations)
  • Around $10 million in expenses ($3 million from fundraising costs)
  • From the above, the cost of fundraising is around 25-30% of the total donation value.
  • You can find more information in Greenpeace’s annual reports here and for more information on Greenpeace's funding, find the link here.

Amnesty International

Amnesty International (also referred to as Amnesty/AI) is a global enterprise focused on human rights. Amnesty International is headquartered out of London in the United Kingdom. Amnesty International has over ten million contributors and supporters around the world.

Amnesty International's mission is to campaign and push for a world where every person enjoys the basic human rights established in the "Universal Declaration of Human Rights". Amnesty International focuses on human rights abuses and campaigns for standardised, honest treatment of people worldwide. It garners public opinion and puts pressure on governments that are considered to be abusing people. Amnesty International focuses on government bodies but can protest against non-governmental bodies and non-public persons, depending on the situation.

There are six key areas which Amnesty offers with:
  • Women's, children's, minorities and indigenous rights
  • Ending torture
  • Abolition of the demise penalty
  • Rights of refugees
  • Rights of prisoners of conscience
  • Protection of human dignity

Amnesty International generates most of its income from donations from its international membership programme. However, like Greenpeace, Amnesty International does not receive government donations, predominantly due to a conflict of interest.

Financials: 

Cure Kids

Cure Kids are a charitable corporation that focuses on researching and discovering cures to widespread childhood illnesses. Clinical research is extremely expensive and not always profitable, which is why Cure Kids is undertaking the task of investing in research that may save children’s lives (but may not be the most profitable and why other research institutes do not pursue these pathways). Cure Kids accepts donations and grants from individuals, corporations and local organisations throughout New Zealand.

The main way people support Cure Kids is through donations to various research initiatives they're currently leading. The second way is volunteering at one of their locations around New Zealand. Cure Kids is focused on supporting children with serious illnesses. Cure Kids' vision is to bring up healthier New Zealand children and help them lead a brighter future.

Cure Kids focus on raising funding to allow the investment of high-impact, New Zealand-based clinical research to assist save, lengthening and enhancing the lives of children with serious life-threatening conditions.

Some examples of Cure Kids funding include:
  • Childhood cancers
  • Inherited coronary heart conditions
  • Epilepsy
  • Infectious diseases
  • Cystic fibrosis
  • Sudden unexpected death in infancy (SUDI)
  • Stillbirth

Financials:  As of 2021, Cure Kids had the following income breakdown:
  • Around $10 million of income ($3 million from fundraising from donations)
  • Around $12 million in expenses ($9 million in research and development, $1.5 million in employee costs and $500,000 in fundraising costs)
  • As seen from the above, most of Cure Kids' expenses go towards research and development to identify and improve the health of young children. Therefore, the salary and fundraising costs as a proportion of total donation value are also reasonable (<20%).
  • Find more information in Cure Kids New Zealand’s 2021 annual report here.

SPCA

A Society for the Prevention of Cruelty to Animals (known as the SPCA) is the name of the non-profit animal welfare society. The SPCA groups function independently, but all work to prevent animal cruelty. The SPCA is devoted to caring for the animals that are in need. Animals that have no homes have been abused and are residing with injuries or illnesses are supported by the SPCA to get healthy, rehabilitated, and relocated to a new home. Donations are one way to assist the SPCA. The other way is to adopt a pet from one of their shelters, effectively reducing the cost to the SPCA to house animals in need.

Regarding costs, unlike the other charities on this list, the SPCA has a fixed amount of money they need to run its operations. Most costs go towards hiring the people caring for the animals in the SPCA shelters. The NZ SPCA needs roughly $47 million each year to run, and around $2.5 million comes from the government. The remainder of the funding requirement must be sourced from donations.

Financials: From the 2020 annual report, the SPCA brought in around $36 million in donations and paid out around $27 million to employees that run the shelters and operations.

Frequently Asked Questions

Where can I find a list of all the charities in New Zealand?

Charities Services has set up a list of all the registered charities in New Zealand, which you can find here. Alternatively, a curated list has been published by “AMemoryTree” that lists them alphabetically - you can find that list here. Per this 2022 government report, there are around 28,000 charities in New Zealand.

You can search for any charity and find out their financials using the Charities Register. Our video explains how this works and what you need to know:

How does donating to charity work in New Zealand? How can I donate to one?

The easiest way to donate to a charity is to visit the website of the charity you would like to support and look for the donation button (typically at the top of the webpage). From there, select an amount you would like to donate and the type of payment you want to make (whether through cash, credit card or bank transfer, for example). 

Where can I find a list of charities in New Zealand? Where can I find more information about charities?

If you're keen to learn more about charities, head to the Charities Services website here. All registered charities provide annual reports and financial statements to the Charities Services. 

How do I figure out how much of my donation goes to the charity?

The easiest way to understand where your donation goes is to check with the charity on the breakdown of their expenses. For some charities, a small portion will go towards fundraising and administration costs. In contrast, most donations will go towards valuable activities supporting the charity's mission (such as key research or providing money to needy people).

Know This: If you can't find this on their website, check out their annual reports (specifically the financial statements). 

Can I donate money without showing my name? What are the rules around anonymity?

It’s up to you. You can choose to stay completely anonymous, or you can leave your name when choosing to donate. It’s completely up to the discretion of the donor. 

I have a specific amount I want to donate. How much should I donate each year? Should I donate it all at once or spread it over multiple years?

How often and how much you donate is entirely up to you. Many donors get enjoyment and personal satisfaction from donating consistently throughout their lifetime, so they donate a small amount each year as they earn income rather than donating a lump sum all in one go. By donating over time, you're able to gain greater satisfaction by staying connected with the cause/mission of the charity and can see how the organisation grows as you donate. Ultimately it's up to you whether you donate all at once or across multiple years.

What are the tax implications (or benefits) of donating to a charity?

Individuals donating to New Zealand charities can receive a tax credit of 33.33% on their tax returns. This tax credit effectively gives you a third of the donation amount as a reduction in taxes. However, this only applies to donations of five dollars or more. There is a list of approved donee organisations on the IRD's website, which you can find here.

Know This: The IRD makes it very easy to claim a tax refund for donations - visit their refund guidance here.

Who typically makes decisions in a charity?

​Generally, charities are governed and managed by an oversight board of trustees. These positions are typically volunteer positions, although these positions can be paid roles depending on the size and complexity of the organisation. In addition, each charity has its unique board appointment and committee process. The significant decisions are likely made at the board level, whilst volunteers or full-time staff are empowered to make decisions for the charity. 

What if I want to donate to charities but don’t have any specific charities in mind?

​One option for those that want to donate but don't have any charity in mind is to donate to a charitable foundation instead of a specific charity. Charitable foundations are set up to donate pooled funds to various non-profit organisations. Charitable foundations and Community Trusts ensure funding goes to the non-profit or community group that needs it the most each year. 

Is there a delay between when I donate and when the recipient gets the money?

It depends on the charity. Many charities will have a procedure for processing and allocating donations. Some initiatives may be as simple as sending the money directly to those in need. For others, it may be a matter of deciding where the money is best spent and in what way. Generally, the money you donate in any given year is usually (but not always) allocated to the intended programme or recipient within the next year.

Law changes announced in mid 2022 suggested charities with operating expenses over $140,000 a year will have to explain why they are sitting on so much cash in future, following the completion of a review of the Charities Act. This means that your donation is likely to be spent within the year.

Why are there so many costs for a charity? Aren’t charities non-profits?

​Yes, charities are not-for-profit organisations. However, it's important to remember that charity fundraising inevitably has costs. The programmes, payment facilitation and compliance costs are all real and need to be paid by someone. Just because an entity is a charity doesn't mean it doesn't incur significant costs, just as a for-profit business does. For example, employees need to be paid, rent needs to be covered, auditors need to be paid, and compliance costs need to be paid. While it's always ideal for keeping costs to a minimum, there shouldn't be any expectation that charities have no costs. 

What is the top misconception about charities in New Zealand?

The biggest misconception is that a charity needs to pass through 100% of donations to the recipients or programmes that they're targeting. So many New Zealanders are understandably frustrated to see news articles that show charities spending a large proportion of the donation on expenses and costs that aren't attributable to the program or person they intended the money for. Examples include:
  1. This Stuff article, which claimed "in some cases, almost 100 per cent (of donations) goes simply to paying for the cost of fundraising. In-person fundraising is some of the most expensive, while grants and major gifts are the cheapest for charities to get.
  2. This BusinessDesk investigation titled "Charity costs: spending money to make money". It also claimed "The rule of thumb is to spend 25% of total funds raised. You may have to spend much more if you are a small charity without any public awareness".

Know This: Charities have costs that need to be funded. If there were no money to spend on key infrastructure, rental leases, staffing and organisational processes, there would be no charity. That said, there are reasonable and unreasonable levels of expenses. Our intention is to provide a sample of charities for consideration that pursue the mission or vision of a non-profit whilst being financially frugal and keeping costs to a minimum.

What are common ways that charities advertise to raise money?

​A key component of charities is that they need to raise more money than they spend on advertising and marketing. For example, many fundraising drives include school raffles or sausage sizzles or getting volunteers to head out to the streets of major cities to educate and inform New Zealanders about the relevant charities. At a certain point, it's better to take more targeted approaches, such as formal events or online advertising/marketing. Unfortunately, many of these activities have costs associated with them.

Why do some charities have higher costs than others?

​Some charities have higher proportional costs than others. These costs can be due to several factors, such as the type of charity work they engage in, the popularity of the charity and how efficient the charity is at optimising costs. For example, a charity that runs a foodbank won't have the same administration and cost structure as a tree-planting charity.

Important: If you're unsure, you can ask any charity how much of your donation goes towards administration and fundraising costs and how much goes towards the relevant cause. 

Why do charities spend so much money trying to get people to donate?

The main reason charities spend so much time, and effort on fundraising activities is because, without outreach, the charity may not be able to get its brand and mission into the general public and fail to raise the minimum donation amount necessary to sustain its operations.

A key concept for charities is Donor Lifetime Value, which looks at the total donation value that a person may donate over their lifetime. For many charities, it can be worthwhile to spend money on fundraising activities, as over many decades, a person’s donations may accumulate to many multiples more than the initial cost to initially attract that person.
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For example, if it costs $10 in administration and fundraising to attract a person to donate $5 and they then donate $5 each year for ten years, the charity will have made a good decision to spend on fundraising activities (even though they would have lost money in the first year). 

I’m considering a charity but don’t know whether it’s got low costs and administration fees. How can I find out?

​All charities must make their annual reports and financial statements available each year, indicating where their cash goes. To find it, check out their website and look for the annual report section. Once you've found the annual report, skip to their financial statements to see how much they spend on costs each year. Our view is simple:
  1. Administration costs that make up less than 20% of the total donation volume are considered frugal charities.
  2. Less than 10%, and they're extremely good at managing costs.

What are some strategies that charities implement to raise more money?

With the rise of technology, it's become much easier for charities to get their brand awareness into the world. However, many charities still focus on getting out in the streets through volunteers to spread their message. In addition to this, it's becoming increasingly popular to see celebrity endorsements, targeted marketing through social media, partnerships with businesses or running events and programmes.

In-person fundraising is one of the more expensive ways to increase brand awareness, given the high cost of hiring people (assuming they are not volunteers) and the limited exposure per hour. Additionally, the tools that come with online marketing and advertising have become increasingly attractive and effective for charities to use.
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While in-person fundraising will always be a charity’s core activity, digital advertising is becoming increasingly popular as charities look to tap into the younger generation with more aligned values.  
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