Charity donations - tv ad

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I got it from a reliable source that there is a well known and reputable Irish Charity that is advertising on the TV looking for people to sign up for a direct debit to make donations. he told me that if someone were to sign up for €7 a month, it would take almost 2 years for any of this money to actualy reach any of its attended destination as it is a marketing company that has set this campaign up and under the agreememt they will receive this amount of payments. has anyone else heard this?
 
Re: Charity donations - tv add

I don't know about this specific campaign, but the general thrust of the story is correct.

Very little of the money collected by direct debit in the first year or two goes to the charity.

Brendan
 
Re: Charity donations - tv add

Would this be for all of the charites who advertise on TV. I give a small monthly donation to an international charity, who advertise on TV here and in Uk. Would the position be the same.
 
Re: Charity donations - tv add

Probably - http://en.wikipedia.org/wiki/Chugger

The fundraisers may be employed directly by the charity as part of an 'in-house' team. They may also be employed by an agency working specifically in the area of fundraising. In this case, the company is usually paid a fee per person signed up. This fee can be around GBP 70 [Source: GBP 350 return on investment at 5:1 return, [3] ].
 
I would guess it applies to all. As it is almost impossible to find out what these guys are doing, I would recommend strongly against donating by direct debit.

I would certainly never donate in any form to Concern because of their constant chugging on the streets.

Brendan
 
Re: Charity donations - tv add

I have not heard the story but I can well believe it. We do some work for a number of charities. We used to give them all discounts discounts, but we have long since copped on to our selves. Large charities are big business, six figure salaries, company cars, lavish expense accounts for entertainment, very generous pension schemes etc, of course they need this to attract the top people to run them. :rolleyes: .......
 
Brendan, do you have any knowledge of the brilliant work Concern does in 40 countries around the world? They are one of the best respected NGOs in the countries where they work.

I agree that 'chuggers' can be irritating but it wouldn't be enough to put me off donating money to a very worthy cause?

I have first hand experience of their work, of the dedicated people who work for Concern at home and abroad.
 
I agree that 'chuggers' can be irritating but it wouldn't be enough to put me off donating money to a very worthy cause?
I would never donate to a charity which employs chuggers. It just bugs me. I also recently ceased contributing to charities run under the auspices of religious organisations for personal ethical reasons. They probably do great work too but I prefer not to support them directly (they probably get some of my taxes through the Government aid scheme anyway).

On a related point people really should not buy into the line that a charity with zero admin costs which uses 100% of donations for relief/development work is a "good thing". Chances are charities who claim to do this have unprofessional administration and probably lose/waste more money than those who get more bang for their buck (less admin costs) with a more professional setup.
 
I agree that charities need to have admin costs, but with some charities, only a minimum amount of the cash donated actually makes it to the intended location.
Back in student days, I did a few days collecting for a large national childrens charity as I earned 30% of what was collected....I discovered during the few days that between everyone getting their cut, only 20% of what was collected actually went to the charity. I quit after an older lady "donated" £10 , saying that she saved £1 per week for a few months before Christmas so she could donate it.....I reckon she never thought that only £2 would make it to the actual charity,
 
Re: Charity donations - tv add

IVery little of the money collected by direct debit in the first year or two goes to the charity.
Does this apply wherewhere you voluntarily (i.e. not in response to a chugger (evil practice) or to a specific advertising campaign) set up an S/O to a charity?
 
I quit after an older lady "donated" £10 , saying that she saved £1 per week for a few months before Christmas so she could donate it.....I reckon she never thought that only £2 would make it to the actual charity,
Did you give her and other donors back the 30% of donations that ended up in your pocket? Or was that admin cost legitimate in your own mind?
 
No, I didn't give back the money to her, I wish I had. But I felt bad that she thought she was donating £10 & I'd be getting £3 of it, my manager got another £2 and the office got the next £3. I don't think she figured on that when she set aside £1 out of her pension each week....so I quit as I decided it wasn't the way I wanted to make money.

I fully agree that charities have admin cost, but most people don't expect that to be 80% of what they donate, which it was for this particular charity.
 
Mr. LNR and I have been donating money, €25 standing order, every month for the last number of years (at least 8 years) to Concern. I realised some of this money was being used for admin but are you really saying that only 20% is actually reaching those who need it.

So every year when we donate €300 only €60 of that is being used as we intended. Surely I am mistaken.

Now we are not rich by any means and I could definately think of other uses for that money at home, especially now with the new addition to our family but we have always contributed and felt we were helping in some way, even if it was only €25 per month.

I am so shocked, I am now considering cancelling that standing order. Not because I want to stop donating money to concern/charities but because so much is wasted.

Are there any charities out there who actually pass on more of the money than a mere €60 out of €300 donated. Are there any charities who use the donations better?
 
I sponsor a child with world vision, and am becoming very disillusioned with they way they keep sending me so much post.
I know I am supposed to get updates from the child we sponsor but I get lettters on a weekly basis, asking for more money, highlighting particular issues, reports on the development work etc.
I have asked them to stop sending this mail as I could just as easily read this via the internet but it keeps coming.

It makes me query how much of my money is being used for advertising, admin etc.

Now I know they need to advertise but this is getting over the top.
 
I sponsor a child with world vision, and am becoming very disillusioned with they way they keep sending me so much post.
I know I am supposed to get updates from the child we sponsor but I get lettters on a weekly basis, asking for more money, highlighting particular issues, reports on the development work etc.
I have asked them to stop sending this mail as I could just as easily read this via the internet but it keeps coming.

It makes me query how much of my money is being used for advertising, admin etc.

Now I know they need to advertise but this is getting over the top.

My experience with my regular subscriptions to Sight Savers (which btw predated their chugging campaigns) is exactly the same.
 
Mr. LNR and I have been donating money, €25 standing order, every month for the last number of years (at least 8 years) to Concern. I realised some of this money was being used for admin but are you really saying that only 20% is actually reaching those who need it.
Surely depends on the charity?
So every year when we donate €300 only €60 of that is being used as we intended. Surely I am mistaken.
On a side note - for annual donations of €250 or more to a registered charity you should make sure to return a Revenue CHY1 form to the charity in question if it would allow them to claim back tax that you have paid and thereby boost the value of your donation. For example the Red Cross website explains the deal here.
Are there any charities out there who actually pass on more of the money than a mere €60 out of €300 donated. Are there any charities who use the donations better?
Maybe individual charity annual reports clarify their admin cost base/overheads? Unfortunately charities are not really regulated in Ireland as far as I know. I don't think that the proposed Charity Regulation Bill ever made it through the system yet?
 
it gets even better. again an employee of a major irish charity (you would be shocked to learn which one) told me that some one goes around the country acting for this charity and collects the money donation boxes that you see on the shelves in the shops. he goes to the local bank and lodges the money. he gets paid by taking his expenses out of the money before he lodges it. he wanted to go under paye for wages and they told him to get lost, that they would get some one else if he insisted on going through paye. two things strike me here. the charity obviously has no controls over the person lodging the correct money into the bank account and they dont want to declare him as an employee because they know they are doing something crooked!!
 
he wanted to go under paye for wages and they told him to get lost, that they would get some one else if he insisted on going through paye.
You mean his status is perhaps one of independent contractor with responsibility for his own taxes so?
they dont want to declare him as an employee because they know they are doing something crooked!!
I don't see how that necessarily follows from what you have posted.
 
In answer to the few posters who have asked if only 20% of their DD money goes to the charity, my understanding is this.

If you choose to donate to a charity by DD or standing order, and set it up yourself, the money all goes to the charity, who have admin costs etc. You can ask for a summary of their accounts where this should be obvious.

If you sign up for the DD with a chugger, they are paid, (quite well), out of your donation, so most of the money you donate in the first year does not go to the charity.
 
Thanks huskerdu, that was my understanding. I avoid chuggers like the plague but do have regular contributions set up for some charities of my own volition.
 
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