Some organisations spending as little as 17 percent of donations on the causes philanthropists donated for in the first place, the Courier Mail reports.
Huge chunks of donations are being spent on chasing further fundraising dollars and some charities are even struggling to break even as their outgoings on attempts to raise donations outweigh what they actually receive, the Daily Mail adds.
An extensive Courier Mail investigation has analysed 45 Queensland charities, concentrating on the wealthiest and most prominent in the state, finding that as little as 17 per cent is ending up in the hands of the intended recipients as the lid has been lifted on Queensland charities expenditure.
Financial reports from 2016 were analysed with findings showing more than 40 per cent of Queensland’s largest charities’ expenditure on fundraising costs was nearly half their amassed donations.
In one example, The Benevolent Society actually spent 10 per cent more on fundraising expenses than the $1 million raised in charitable donations.
83 per cent of the $3,742,063 raised by disability charity House With No Steps was used for fundraising costs in another worrying example of charity funds not being spent on the intended cause.
In absence of a Queensland standard, The Office of Fair Trading Victoria’s guidelines were used to distinguish which charities failed to meet the 50 cents in the dollar benchmark they use, which forced charities to inform donors in a ‘public disclosure condition’ that their donations weren’t going directly to the cause.
83 per cent of the $3,742,063 raised by disability charity House With No Steps was used for fundraising costs in another worrying example of charity funds not being spent on the intended cause
Calls to end duplication in crowded charity sector (Courier Mail)
House with no steps