03.Survey of charities
Charities surveyed by CHOICE
We surveyed a mix of 11 large domestic and overseas aid charities that do a diverse range of work. Nine responded and provided the comprehensive information requested. Lifeline Community Care Queensland and the National Heart Foundation didn't send a survey response. The latter sent a copy of its annual report.
The charities in the table willingly gave CHOICE their financial info for the last year. However, the result is an example of how such info is structured in different ways, so that it becomes impossible to compare.
| Organisation name |
Australian Red Cross |
CARE Australia |
Mission Australia |
The Cancer Council NSW |
Oxfam Australia |
| Compliant with ACFID or FIA Code |
ACFID, FIA |
ACFID |
FIA |
FIA |
ACFID, FIA |
| Income ($, pa) |
| Donated funds |
43,781,000 |
14,811,717 |
20,285,000 |
42,228,000 |
38,029,000 |
| Grants |
363,720,000 |
29,949,159 |
210,432,000 |
1,231,000 |
12,841,000 |
| Other income |
70,241,000 |
3,356,878 |
23,223,000 |
17,898,000 |
3,645,000 |
| Total income |
477,742,000 |
48,117,754 |
253,940,000 |
61,357,000 |
54,515,000 |
| Expenses ($, pa) |
| Community education and programs |
915,000 |
838,698 |
2,896,000 |
12,839,000 |
Not applicable |
| Fundraising costs |
23,532,000 |
2,834,781 |
7,092,000 |
13,353,000 |
7,966,000 |
| Administration costs |
15,049,000 |
2,744,114 |
8,504,000 |
5,081,000 |
3,457,000 |
| Service delivery and other costs |
454,929,000 |
39,614,565 |
239,480,000 |
17,280,000 |
36,146,000 |
| Excess or deficit of income over expenses |
-16,683,000 |
2,085,596 |
-4,032,000 |
12,804,000 |
6,946,000 |
| |
| Value of money held in reserve |
257,535,000 |
12,740,769 |
41,354,000 |
63,175,000 |
29,982,000 |
| Value of all assets including property |
339,401,000 |
48,224,900 |
119,622,000 |
67,889,000 |
44,542,000 |
| Commissions paid to third-party commercial fundraisers |
20% over life of donation |
No |
90% of first year’s donation, 25–30% over 5 years |
Under 25% over the average life of a donation |
70% of first year’s donation |
| Benchmarks: effectiveness of fundraising operations and costs |
Fundraising costs, return on income, donor numbers, growth in fundraising, donations received |
Fundraising cost ratios, relationships with donors, donations, brand awareness, new donors acquired |
33% fundraising cost ratio, except bequests (14%) |
Other state cancer councils, CFA best practice guidelines, other charities’ annual reports |
Cost of fundraising, program investment and cost of administration ratios |
| Independent directors on the charity’s board |
2 |
18 (2006/2007) |
8 |
8 |
All (13) |
| Stakeholder representation on the charity’s board |
Member representation |
No |
All directors are donors |
2 cancer survivors |
Directors are ordinary members and donors/volunteers |
| Phone number |
03 9345 1800 |
02 6279 0200 |
02 9219 2000 |
02 9334 1900 |
03 9829 9444 |
| Website |
www.redcross.org.au |
www.careaustralia.org.au |
www.missionaustralia.com.au |
www.cancercouncil.com.au |
www.oxfam.org.au |
| |
| Organisation name |
The Salvation Army Australia Eastern Territory Social Work |
The Smith Family |
Vision Australia |
World Vision Australia |
| Compliant with ACFID or FIA Code |
ACFID, FIA |
FIA |
FIA |
ACFID |
| Income ($, pa) |
|
|
|
|
| Donated funds |
74,213,000 |
35,123,000 |
27,981,000 |
332,915,946 |
| Grants |
133,299,000 |
6,505,000 |
26,751,000 |
17,739,260 |
| Other income |
76,472,000 |
4,842,000 (A) |
19,848,000 |
5,819,529 |
| Total income |
283,984,000 |
46,470,000 |
74,580,000 |
356,474,735 |
| Expenses ($, pa) |
| Community education and programs |
Not applicable |
33,937,000 |
Not applicable |
2,838,936 |
| Fundraising costs |
5,817,000 |
9,351,000 |
3,240,000 |
27,690,897 |
| Administration costs |
No figure provided |
1,920,000 |
12,075,000 |
24,496,415 |
| Service delivery and other costs |
254,601,000 |
Not applicable |
54,889,000 |
311,646,276 |
| Excess or deficit of income over expenses |
23,566,000 |
1,262,000 |
4,376,000 |
–10,197,789 |
| |
| Value of money held in reserve |
77,386,000 |
21,140,000 |
188,924,000 |
28,926,618 |
| Value of all assets including property |
411,272,000 |
45,669,000 |
206,981,000 |
68,769,181 |
| Commissions paid to third-party commercial fundraisers |
No |
No |
No |
7.6% of the lifetime donations (B) |
| Benchmarks: effectiveness of fundraising operations and costs |
NSW Charitable Fundraising Regulation, FIA Code |
Cost of fundraising ratios |
Quarterly program evaluation, comparison against other not-for-profits |
Fundraising and administration cost ratios |
| Independent directors on the charity’s board |
0 |
9 |
12 |
13 |
| Stakeholder representation on the charity’s board |
No |
No |
Client representative council nominates 2 board representatives |
All directors are donors |
| Phone number |
02 9264 1711 |
02 9085 7222 |
1300 84 74 66 |
133 240 |
| Website |
www.salvos.org.au |
www.thesmithfamily.com.au |
www.visionaustralia.org |
www.worldvision.com.au |
| |
Table notes
(A) 'Other income' figure includes the net profit from commercial activities. If the total income (before costs) from commercial activities was included instead, the charity's total income would be over $74 million.
(B) In the financial year to 30 September 2007, only 5% of new child sponsors were acquired via third-party commercial fundraisers.
Using the table
Income An approximate breakdown of where the charities’ money comes from. The main sources are government grants, donations from the public, and the money they make from commercial operations such as shops and merchandise. The table shows that some charities get most of their income from government contracts and spend less money on public fundraising, while others get most of their money from public fundraising appeals. Comparing these charities’ fundraising cost ratios is tricky, as they’re different types of organisations, which raise money in different ways.
Expenses An indication of how the money is used. Respondents defined their fundraising and administration costs in different ways. 'Other' costs were sometimes interpreted as meaning delivery of the actual service provided by charity.
Value of money held in reserve tells you how much money the charity holds back. Sometimes, charities are criticised for holding too much money in reserve, while they continue to appeal for donations. However, charities need to ensure their long-term viability.
Value of all assets including property gives an indication of the size of the charity.
Commissions paid to third-party commercial fundraisers Not all charities use third-party fundraisers, but when they do the cost can be a high percentage of the donor’s first-year donation. See Donating effectively for more on this.
Benchmarks for fundraising effectiveness, independent directors and stakeholder representation on the board are all signs of good corporate governance.
For more information, check the charities' websites. All make their annual reports and financial statements publicly available.