We designed the application to help support charitable organisations across Australia and rightly so, it’s tough for charities to get their messaging out there, it’s a flooded marketplace for some categories.
Which leads us to the next point, how can the charity marketplace be so competitive, I just want my donations spent on doing great work, not on advertising.
As with everything, the answer to this is more complicated than it might first seem.
Fundraising is important. Charities need to be able to promote their good work and encourage you to support their cause.
However, the question remains, is advertising a good spend? Well, that depends. Some charities would argue it’s been fantastic for brand awareness and creating engagement and others would disagree. In either case, everyone agrees that charities need to invest in a range of fundraising methods to build your trust.
What is a good fundraising return?
Most charities can get at least $2.50 back for every $1 invested into fundraising.
- If your charity gets a better return, you should congratulate them on adopting a successful fundraising campaign.
- If your charity gets a poorer return, you have a right to be annoyed about their fundraising tactics. They aren’t working.
How do you calculate a charity’s fundraising return?
(Animals Australia example below)
- Step 1: Search the charity’s name under the ACNC’s Charity Search page.
- Step 2: Click on Financial and Document’s tab. Select the latest financial report.
- Step 3: Identify the Income Statement in the financial report. Calculate the total proceeds of fundraising by adding any line item in the Income table that relates to relates to donations, non-government grants, bequests and philanthropy.
Calculate the total spend on fundraising by adding any line item in the Expenses table that relates to fundraising, communications and/or marketing.
- Step 4: Calculate the return
Fundraising return = Donation proceeds / Fundraising expenses
As you will find, there is significant spend on advertising and fundraising costs. My Charity Change was designed to help combat this and increase the return amount for every partner involved. Please feel free to do your own research before deciding on the charity(s) you would like to support, we are always here to help out!