Charities Percentage Of Donation That Goes To Charity Chart
When you donate to a charity, you want to know that your money is going to a good cause. However, not all charities are created equal, and some may use a larger percentage of your donation for administrative costs rather than for the actual cause. This is where the charities percentage of donation that goes to charity chart comes in handy.
What is the Charities Percentage of Donation That Goes to Charity Chart?
The charities percentage of donation that goes to charity chart is a tool that allows donors to see how much of their donation is being used for the cause versus how much is being used for administrative costs. The chart typically shows the percentage of revenue that is being used for program expenses (the actual cause), fundraising expenses (the cost of raising money), and administrative expenses (office expenses, salaries, etc.).
The chart can be helpful in determining which charities are using the majority of their funds for the cause versus those that are using a larger percentage for administrative costs.
How is the Chart Created?
The chart is typically created by the charity itself or by an independent organization that evaluates charities. The organization will review the charity's financial statements and determine the percentage of revenue that is being used for program expenses, fundraising expenses, and administrative expenses.
The chart is then made available to the public, typically on the charity's website or on the website of the organization that evaluated the charity.
Why is the Chart Useful?
The chart is useful because it allows donors to make informed decisions about where to donate their money. By seeing how much of their donation is being used for the cause versus administrative costs, donors can feel more confident that their money is being used in the way they intended.
Additionally, the chart can help to hold charities accountable. If a charity has a low percentage of revenue going to program expenses, it may be a sign that the charity is not using its funds effectively or efficiently.
What Should You Look for in the Chart?
When reviewing the charities percentage of donation that goes to charity chart, there are a few key things to look for:
- Percentage of revenue going to program expenses: This is the most important number to look at. You want to see a high percentage of revenue going to program expenses, as this means your donation is being used for the cause.
- Percentage of revenue going to fundraising expenses: This number should be relatively low, as high fundraising expenses mean less money is going to the cause.
- Percentage of revenue going to administrative expenses: This number should also be relatively low, as high administrative expenses mean less money is going to the cause.
Examples of Charities Percentage of Donation That Goes to Charity Chart
There are a few different organizations that create and publish charities percentage of donation that goes to charity charts. Some examples include:
- Charity Navigator: This organization evaluates charities based on a variety of factors, including financial performance. Their ratings system includes a rating for a charity's financial performance, which includes the percentage of revenue going to program expenses, fundraising expenses, and administrative expenses.
- GuideStar: This organization collects and publishes information about nonprofits, including financial information. They provide a chart that shows the percentage of expenses going to program expenses, fundraising expenses, and administrative expenses.
Conclusion
The charities percentage of donation that goes to charity chart is a useful tool for donors who want to ensure that their money is being used for the cause they intend to support. By reviewing the chart, donors can make informed decisions about where to donate their money and hold charities accountable for how they use their funds.