Cost of Fundraising Infographic

For many NFPs in Australia, the cost of fundraising is a confusing topic. It can be frightening to many leaders who are new to fundraising. And it is difficult to determine an approach given the complexity of the subject and the often misunderstood perception of the donating public.

It's not surprising that organisations with smaller ambitions and less focus on individual giving fundraising will want to challenge the perceived high cost of fundraising among the public. They are quick to point out that gifts are largely going to the cause and they place more importance on communicating strong return on investment statistics and a cost effective approach to administration and fundraising.

Experienced fundraisers would point out that they are wrong to do so; organisations that go to great lengths to tell supporters and website visitors that they spend only 12c in every dollar on fundraising and administration are perpetuating a common misconception that charities should spend all the money they raise on the cause.

I was surprised, and a little dismayed when I started to look at cost of fundraising communication across NFP websites in Australia.

The cost of fundraising infographic is very attractive - and some organisations have created some eye-catching designs to express their penny-minding approach to improving lives or beating cancer. It is very disappointing that some of biggest larger charities - with huge acquisition budgets, large in-house teams, greater efficiencies of scale and larger media buying power - are touting the same cost of fundraising messages as those that have less understanding of what's at stake.

Let's open up some more constructive dialogue on the topic.
Please comment if you have an opinion.