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Moral Maze, Guidance please.

I have until quite recently regularly donated to a couple of charities on a regular basis. 
However, the salary of the CEO of one of the  organisation I donated to exceeds that of the Prime Minister.
I am full of admiration for the volunteers of these organisations and the fund raising efforts of the people who generously give up time
and raise money for charity.
I now only donate to local charities on an ad-hoc basis. 
Should I accept that these organisations require a highly competent CEO and continue to donate?
Or should I be more choosy as to which charity I donate too?  ( Just for context, I don't donate thousands just a few £ here and there)

Comments

  • It depends on the complexity of the organisation. If it's a really big charity I'd be surprised if the salary didn't exceed the Prime Minister's - currently £164,584 for reference. I think CEO is a different role and that amount seems like a lot to me (I don't earn anything like that and never will) but many organisations with thousands of staff would pay more than that for senior staff. 

    A better question is how well run is the charity? How much of what it raises goes to the causes it supports. A CEO on £40K a year might look good as a headline but if only 10% of funds raised goes on the cause, it doesn't look so good. 


  • I always look for small local charities as they ‘employ’ unpaid volunteers which means more funds go directly to the cause.
  • The prime minister's salary is ludicrously small. This is not a good comparison. 

    Charities are complex organisations. The CEO of a charity works just as hard as the CEO of any other company - like it or not, charities are run as businesses. 

    Personally, aside from whichever corporate charity our company chooses to support each year, my charitable efforts always go towards something local, rather than national. We have a local children's hospice that we raise money for in cycling events, for instance - and I volunteer at a local food bank once a month. 
  • I’m totally with you on this dilemma, @usetobunkin. On the surface, if you pay someone, say, £200K per year and that CEO increases income by £500K per year, it’s a good thing. However, I find this hard to accept, as the sales / marketing that goes with it may well mean it is far less impressive and , importantly, it may be taking money away from other charities with low costs. As previously mentioned, finding out the percentage that ends up with the cause is a good starting point. It might also be worth comparing it to the performance of similar charities in a particular sector. Some charities need to spend heavily to be seen, whereas others are more immediately recognisable to potential donors. Not an easy topic.
  • 1. No-one should tell you where you should or shouldn't spend your money. 
    2. If you have, in the past, supported a charity, and you now don't want to because the CEO takes a high salary, then consider whether you can make the same contributions via another route, to meet the aspirations of the charity in question.  If there is a "better" way to get your contribution to the front line, then consider that route instead. 
    3. Charities require CEOs in order to run the charity to the greatest level of efficiency and to maximise donations.  No decent CEO, used to managing large organisations would consider getting out of bed for less than the PM earns.  
    4. Small, local charities also have monies that are inefficiently dispersed.  If anyone thinks that local charities are not wasteful, they ought to reconsider. 
    5. If you give money to a charity and you are concerned about where and how it's spent, it's a good idea to choose a charity that facilitates Gift Aid.  
    6. The cause you're supporting should be a bigger determining factor than the salary of the CEO.  If you want to support a cause, choose a charity that most closely reflects your aspirations for that cause, no matter how big, small or local it is.  
    7. Giving money to charity is a good thing to do.  
  • Some costs/overheads are inevitable at any charity.

    I think it is up to each individual to decide if a particular charity is doing good work worthy of their donation but I think it is unreasonable to say that staff shouldn't get a fair wage.

    What is a "fair wage" is of course a matter of debate.
  • Look up the % of donations that go to the charitable cause, should be freely available on the website and/or on the charity commission website. I work for a charity, CEO earns a lot of money but our % spent on our cause is high and the CEO works very hard. Obviously they last bit I only know because I see it first hand but I know my charity would perform less well without them so I think they justify their wage 
  • I work for a charity and our hardworking CEO does earn more than the Prime Minister. The organisation is quite large and needs to raise over £20million each year to provide the service, it therefore requires good management from the top. 
     
    The current economic climate makes fundraising extremely challenging and requires many income streams. As mentioned by @Chizz, Gift Aid is very important and I would encourage everyone who is a tax payer, to enable your charitable donations to be Gift Aided. It allows charities to increase the value of donations made by taxpayers by claiming back the basic rate tax paid by the donor on the donation. We can claim 25p in the £ on every donation that is Gift Aided, so a £1.00 donation become £1.25 to the charity. 

    High rate taxpayers can reduce their own tax bill by Gift Aiding their donations https://www.goodtogive.co.uk/can-high-income-tax-payers-benefit-from-gift-aid-relief/


  • I personally choose to help out at smaller charities, unless I’m sponsoring people who are raising money for larger ones, as it feels like I’m making more of a difference. The likes of UNICEF and Oxfam, for example, get a lot of backing from sports and rock superstars, so I’d sooner give to the local hospice.
  • Sponsored links:


  • It is a universal truth that the bigger the charity, the smaller the percentage of donations ever makes it to the front line. Not sure what the percentage is now, but I know at one time just 11% of donations to Oxfam made it to the actual projects they support.

    Tldr; if you want the maximum percentage of your donation to get to the actual good cause, then donate to smaller, local charities.
  • edited August 10
    Next time your in the rose of Denmark, we done a charity bike ride from the pub to Brighton.
    Theres a photo above the bar.
    We simply got the money together, went up the QE and asked what they needed and purchased it.
    You would be amazed at the price of those stands that hold drips/bloods.
    Apart from the recent cancer one for Cardinals daughter, I would rather pass the money direct whenever possible.
    The reality being, I would guess your chosen charity would do well to see 10% of your donation following admin fees
  • Below is what I've posted on this topic before. 


    Generally I favour small charities for my donations. Ones run largely by volunteers who cover their own expenses and where at least 90% of what you donate will be going to the end aim with 10% going on costs. This is largely because I have personal connections to these charities - family members founded/run/are involved in them or my Dad as a retired chartered accountant sits on a number of boards of charities. 

    However I am also realistic. The impact these small charities can have is huge to the people they help but is concentrated in a very small area. They can't make wholesale change or change the bigger picture or influence governments in the same way that large charities can.

    Large charities are needed and by nature of being large their costs increase. They need full time staff to deliver whatever it is they do, they need staff to process the money, they need staff to look after those staff (payroll HR etc.) They will still run as efficiently as they can, although I'm sure there are exceptions, but generally they still have the end user as the aim. Obviously this means the % of your donation that covers costs rather than going direct to the cause will be lower but often you get more impact for that donation.

    Regarding CEO salaries in the third sector. Compare to the salary of a CEO in the private sector in a similar organisation, same number of people, handling the same amount of money operating in the same number of counties and it will be about a third of the salary. And that's before you consider benefits like pension, healthcare, bonuses etc that you don't get in the charity sector 

    You can't expect someone to do a high pressure, long hours, high skilled role for nothing no matter how passionate they are about a cause. Equally you wouldn't want them to. In order to run these organisations properly, prevent waste and actually help people you need strong leadership. You want people with the right skills and experiences in these jobs to make sure the organisation runs properly and set the direction. You can't do that if you pay nothing. Poor leadership would waste far more of your donation than the salary of good leadership.
  • edited August 11
    It is a universal truth that the bigger the charity, the smaller the percentage of donations ever makes it to the front line. Not sure what the percentage is now, but I know at one time just 11% of donations to Oxfam made it to the actual projects they support.

    Tldr; if you want the maximum percentage of your donation to get to the actual good cause, then donate to smaller, local charities.
    "Universal truth" is doing a disproportionate amount of work here. Perhaps "common misperception" would be much more accurate. 

    According to Oxfam GB’s 2023/24 Annual Report, for every £1 donated, 80p (80%) goes toward emergency response, development projects, and campaigning work. Specifically, 39p supports humanitarian emergencies, 39p funds longer-term development projects, and 2p is used for campaigning and advocacy. The remaining 20% is split evenly, with 10p covering running costs and 10p invested in fundraising to generate future income. These figures exclude Oxfam’s retail operations.
  • It is a universal truth that the bigger the charity, the smaller the percentage of donations ever makes it to the front line. Not sure what the percentage is now, but I know at one time just 11% of donations to Oxfam made it to the actual projects they support.

    Tldr; if you want the maximum percentage of your donation to get to the actual good cause, then donate to smaller, local charities.
    Having raised funds for Oxfam both directly and indirectly on and off over the years, I've heard this lie about their percentage going directly to the cause multiple times before and cannot for the life of me understand where it originated. Oxfam are actually one of the 'better' large charities (mainly because a lot of their helpers are volunteers and not funded by the charity. As far as I'm aware, the percentage going to actual causes has never dipped below 70%, and is currently around 80%

  • Anyone looking for a local charity where everyone is an amateur, in both senses of the word, can donate to the Charlton Athletic Museum via the PayPal account linked to our cafchistorian@gmail.com email address.
  • edited 8:17AM
    I’ve worked for charities for over 30 years, smaller charities in my experience really have to make sure every penny is used wisely and therefore more efficient in getting their resources to the frontline. 
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