The Direct Mail Fundraising Debate: Does it Still Work? Of the $1.9 millionpaid in the settlement, about half went to developers who had paid the fee, but$949,185.12 was left unclaimed, according to an April 9 release from the city. Why? Rory Green & Tom Ahern 20)If It Were Easy To Do, We Wouldnt Need You Karen Osborne 21)You just gotta love older people Sean Triner 22)My Top 5 Takeaways From the International Fundraising Congress Rory Green 23)How effective is your welcome program? Bejasus.. Good points, but not enough for me to not donate. There is the real problem. Since 2006, with the help of more than one million supporters, KWN earned an F rating from AIP for inefficient fundraising and for spending only 18% of its total expenses on its programs to help sick and dying children. Where do you draw the line? After a decade of indulging his darkest vices as a nightclub promoter, Scott declared spiritual, moral, and emotional bankruptcy. Lets be clear. Participants build their own filters, are charged a nominal fee ($5), and receive hygiene and sanitation training by our partners staff.. He spent two years on a hospital ship off the coast of Liberia, saw the effects of dirty water firsthand, and came back to New York City on amission. Of course, we all know that for the most part, non-profit donations are fungible. Published by Simon Scriver on January 20, 2014January 20, 2014. Concerns? We're deeply grateful to those who provide equipment and services to help us get the job done with quality andstyle. Many charities have the top team on 5-600k . Great debate. Her most recent book, from Curbside Splendor, isBody Horror: Capitalism, Fear, Misogyny, Jokes. where do you suppose the money for donations will come from? Unless we KNOW they arent, then we shouldnt insinuate that they arent. Buy the New York Times bestseller, an inspiring personal story of redemption, second chances, and the transformative power within us all from charity: water founder Scott Harrison. Its spending big chunks of funds on advertising that annoys me, and thats one of the reasons I like charity: water. He is a TEDx speaker and has previously won the Toastmasters UK & Ireland International Speech Contest. The operating costs are paid by donors . Which weve seen to be very motivating to donors. Was it all well spend, Im sure not. Hmmm. What a read! With a staff of less than 50 last year, charity: water raised around $27 million total. Reminds me of other stories. Profits from each item will fund our operating costs and help us grow. How many people have been offered religious or other instruction? The United Methodist relief agency (UMCOR) makes the same claim for emergency disaster relief because their admin and fundraising costs are paid through a church-wide appeal. Not a good business model because it is not sustainable long-term. Until they were called on it by another federation as it clearly violated the definition of how to calculate your overhead. If they are currently able to give about 100% directly to the cause, good for them! Right here is the right webbpage for anybody whoo would like to understand this topic. But donors look at this claim, then the rating agencies and are suspicious because they dont align. 101fundraising is so successful because of excellent posts from great bloggers and thousands of readers worldwide. Then we have nothing to complain about. Most water projects that are funded by CW are not sustainable at all. Yes of course. Prior to Apple, as the CEO of Burberry, she transformed and tripled the companys value. Well not all, just those guys hating on scott on the top. Im constantly inspired or motivated- but usually lose interest before I finish writing the thought down. It costs money to raise money but that cost doesnt have to be passed on to the donor when there are others that will contribute to cover those costs so 100% will go to the cause. In particularly corrupt nations, like Cambodia, this often means the government is allowing an NGO to do work (even under duress) that it should be doing itself. Charity care helps low-income families avoid crushing medical debt by making financial assistance available to those who qualify, Ferguson said. But fiscal transparency only goes so far, and isnt accountability. So, yes, i will donate my money in hope and faith that beautiful prople around the world, like yourself, will also help in anyway they can. Nor can anyone guarantee thats all that charity: water does. We track every dollar you raise and show the projects you helped fund with photos and GPScoordinates. Do you run a charitable organization of the same caliber? AND of course since charity:water mostly funds these agencies to deliver its projects the admin they deny is simply built into the downstream agencys costs. flag day 80% if you take a sticker, 67% if you choose a metal pin?? As far as I knew of bucket collectors, they did it for free, volunteers. Which was true however, it completely obscured their real overhead and administrative costs. Lots of what ifs? in paragraphs 4 and 5. Achara is also focused on fostering diversity, inclusion, and social justice inside and outside of the company, and his corporate work has been recognized by Ebony, Black Enterprise, and Profilemagazines. Dont tell me what proportion of my notional money goes to the field, tell me what proportion of all your funding goes to the field thats the only figure that counts. Work out a deal with businesss to get the cost of the admin side covered. By itself, this is nothing new. In the age of increasingly well-informed donors that require a high level of transparency, is this even a desirable or even necessary model? We dont consider our projects complete until the community receiving them is engaged and empowered to care for them. (Sewage service bills also appear on water bills, but the money goes to a separate entity, theBuncombe County Metropolitan Sewerage District.). The product is a very reliable water pump, the famous BluePump, we dont sell it ourselves in fact, but we get royalties from the company that sells it world wide. The foundation will use the money for two scholarship funds. Send us an email and well answer them as best we can, signs off blog posts. No marketing budget implies no fiscal waste: 100 percent of the funds raised toward water projects go toward water projects. 100% of donor fees go to water projects. It was so new- yet so nice!- to acknowledge my own thoughts on the subject. Not as long as they continue the 100% model where they guarantee that 100% of my donation will go directly to the field. I have nothing against CW, on the contrary, i like the guys, but we have to be realistic as well! (This appears to be the new name of Hagar International, an organization largely devoted to the contested anti-trafficking movement.) Really, its quite simple. Theyre ambitious, they take risks. Scott was recognized in Fortune Magazines 40 under 40 list, the Forbes Magazine Impact 30 list and was recently #10 in Fast Companys 100 Most Creative People in Business issue. If you look at what they distributed in grants and assistance, its about 78% of total costs. Makes you think, huh? I researched a bit more and thought the following information might be interesting to you: #1 American Association of State Troopers Scholarship Foundation (AASTSF) states on its website that 97% of your donation will be deposited directly into our Scholarship Foundation account, which is used to provide college scholarships to children of our members, and explains that the remaining 3% is used to pay the administrative costs of processing your donation. Their overheads account for between 25 32% per annum over the last few years. Why on earth would you spend time and energy attacking an organization that is doing so much good. You can even prove this within any group of random strangers: ask them who their favourite charity is andwhy. In our meeting, Young shared several stories of funders, (although none of funding recipients), like the 6-year-old whod made an epic YouTube video; the man who had two competing donation streams, one to cast a vote to keep his beard and the other to vote to shave it off; Justin Bieber; Adam Lambert, Soledad OBrien; and a woman who, if her funding goal was reached, promised to swim from Alcatraz to San Francisco without a bathing suit. Charity: water acknowledges the murkiness to a point. Dont attack another nonprofit because they have a different model. By perpetuating this, and trying to outdo each other and present the smallest admin costs, as a sector were reinforcing with the public that somehow the cause only relates to a percentage of what we spend. Shame on you, Simon Scriver. You should pro-actively find out the most cost-effective way to donate to the charity you want. At Stash, he oversees branding, advertising, design, and PR/communications. These entrepreneurs, artists, musicians and business leaders fund our overhead costs - costs that include office rent, staff salaries and benefits, flights, and even the toner for our copy machine. All businesses have setbacks and must course correct at times. I have my own questions about charity : water but some on-line searches provided a lot of answers. Matt Damon, charitable foundations, and others can raise the $$$ to pay the expenses to run the organization while allowing 100% of the money from the average Joe to go into the field. Scott Harrison explained very clearly and with a chart how the overhead is paid. Let this be a lesson to other charitable movements, the more you share, the more well share, TNW magazine effused, equating the companys transparency with fundraising success. Explore our openings and join theteam. Simply by the ad-hoc nature of most projects, there is little or no attention for sustainable services. Sounds genius to me. ), There are lots of great organisations in the WATSAN space doing bigger stuff but aware of the need to spend money on management. Have you not done any research about this concept? That said, CW was not the first to use this messaging. Good to see an article like this that spells out the dilemma it creates for small organizations that contribute so much, with little or no backing I work with small self funding people and humanitarian groups that do wonders during disaster situations, most pay entirely out of their own pockets. I cant know today that every one of those is pumping. Republicans have introduced several bills aimed at bolstering the fossil fuel industry, seemingly at all costs. Charity: water is upending the traditional not-for-profit models reliance on obfuscation and fiscal padding as standard operating procedure. The organizations success from a media standpoint isnt in dispute. PS except Charity : Water donors because they keep getting told it is 100% to cause! But I will never donate to them. On-the-ground partners, swayed by the big bucks charity: water pulls in, may be devoting resources to water projects when their efforts could be more effectively applied elsewhere. Except there is a problem a very real problem that Charity: Water is creating for other non-profits and causes (and donors as well). Private donors cover our operating costs so 100% of your money can fund waterprojects. See our 100% Model Statement. * Margaux Smith 39)Everything that is wrong with our retention programmes and how to put them right Charlie Hulme 40)What I Learned At #IWITOT Georgia Bridgwood 41)A few words about Ebola and you Francesco Ambrogetti & Derek Humphries 42)Shouldnt Best Practises Do Better? So, one bank account 100 percent goes to water. I dont donate to them as I have other causes closer to my heart but their fundraising structure and impact measurements seem to be legitimate, at least from a laypersons perspective. But I will accept your shaming if you dont have the time to chat. Hell assume that other non-profits are doing something wrong, or maybe even unethical, when in fact they are spending the same or less on overhead as Charity: Water. But we dont have the data yet, he says. In traditionally Buddhist Cambodia, with a growing Muslim population the US State Department has flagged as a concern, conversion to Christianity is no small matter. If you dont invest in infrastructure and staff, you simply cant do an effective job. But I recently read that even in this case, the donor still cannot claim 100% of their ticket price as tax-deductible, whether another sponsor claimed food costs or not. Yes certainly its important for the majority of people, and it will continue to be so until charities show them why it doesnt make sense. Most donors in the US wont give unrestricted, look at the falling rates of participation in University annual funds. The ship is part of the organisation Mercy ships, a not for profit organisation where 100% of the money goes straight to the field. They became the first family to donate a one-time gift of $1 million to support operations, at a critical time in the organizations growth. I to love charity water. I would say that the average donor does not realize how the 0% is achieved. For one thing, everyone involved is really nice: friendly looking, engaged people, all attractive and bright, as documented in a gallery of quirky staff photos. The success of Charity: Waters 100% Model requires that the organization aggressively market this falsehood. Maybe some people will give who wouldnt otherwise have given as a result of this model!. As I inderstand it, their financial structure is a church and state model. Wed even pay back credit card fees, meaning if a donor gave $100 with a credit card and we got only $97, wed make up the $3 and send the full $100 to provide clean water for people in need. How about Engagement Fundraising? Wise, well thought out, spending which result in impact is 100% about the cause. Answering the eternal question how much of MY donation goes directly into the work of .. is impossible to answer simply and honestly. It prepares vulnerable women,girls, children, disabled,seniors and common citizens by imparting Life Saving Education at their Door Steps in 19 states of INDIA. Charity: Waters aggressive marketing of the 100% model fuels this problem. Of all the videos weve published, it had one of the most powerful responses to it. However, my research shows that whilst donors say that admin costs are really important, how they behave does not reflect that. (Hagar International also does faith-based work.) That meant this year, theaverage residential user saw a decrease in bimonthlybills from $65.38 to $56.86, McDowell said. Clean water projects are important because it seems like such a foundation for every other sort of relief work beyond it. Or is it? Indeed, it seems the NGO simply isnt engaging in big-picture questions about water access, and thus its future as something of a PR front for aid organizations doing on-the-ground water work remains bright. Then ask them if admin costs are important to them. A small group of smart business people understand the concept and are willing to fund the overhead to continue the amazing work. I love them. My own problem with the 100% to the field statement is that its using the letter of the law to defeat the spirit. Even in the simplest of terms a donation from me would almost certainly incur credit card fees. A local company vie an ad in the paper offered a job, standing on a street corner with a collection bucket and Id get 40 cents in the dollar! Theyve funded about 10,000 water projects, providing clean water to about three and a half million people. What pumps are up and running, what projects are failed, and how many still have access to clean water? That set off legal actions across the state against cities, includinga 2018 class-action lawsuit against Asheville for a capital fee it charged water customers based on meter size. We have 1.3 million Twitter followers, and our videos might get viewed a couple of hundred thousand times, Young explains. Webcharity: water Goods Support clean water in style with gifts that make our work possible. That should be enough. As with its devotion to financial transparency, charity: waters grasp of the need for systemic change is inconsistent. And regardless of how much we ever do The poor will always be with you(which is obviously not an excuse to do nothing). It makes me very suspect about the kind of work Fundraising Ireland and ChangeFundraising do. Harrison has been recognized on Fortune Magazines 40 under 40 list, on the Forbes Magazine Impact 30 list, and in Fast Companys 100 Most Creative People in Business issue. I didnt donate, I investigate! This is my issue as well. We require strict financial reporting, including detailed budgets from our implementing partners to prove how the money has been spent.. In reality in Africa this is a big scam, needles expensive, useless and not sustainable as well, but for fundraising it works perfect. Their model will change if it fails to work. You are really picking this apart. Joel Burgess has lived in WNC for more than 20 years, covering politics, government and other news. Credit: Vickie D. King/Mississippi Today. Its interesting that anyone would take issue with this model. Charities play an important part in modern society, providing services and activities for Read more, Unless youve been living under a rock, chances are youve heard of NFTs. I agree with Marias assessment of your commentary. In my example above the charity still has administration costs but the average donor will see the 0% and not understand why other charities cannot/choose not function in the same way. Given Scott Harrisons personal faith, it isnt unthinkable that his organization may have adopted similar values. That filter is Jesus. CW Sweatshirt ", Timeline:Water a fighting word in Asheville. Exemplary entrepreneurship, Fast Company said of the group. Its all about the resources people like Rahm Emanuel, Jeff Epstein, and yes, even the posthumously sainted Seth Rich, take OUT while putting in some pipes for water. Your advice is soooo helpful. (Contacts in Cambodia have no answers: Theyve never heard of charity: water, a possible side-effect of the on-the-ground partners system, which also speaks to concerns about accountability.). Simon, I think you should donate to charity:water and designate your gift for overhead. The fact is, few donors are excited about paying a charitys electricity bill; they want their funds to go directly to where the action is. Its irresponsible, and its not sustainable. The CEO? Colonel Nagar M Verma,Director General Saritsa Foundation.. http://www.truth-out.org/news/item/13814-the-problem-with-charity-water. Yes this is in the USA and the rationale is that if you pay $100 for a dinner auction and get $60 worth of food and wine, then you should only get a $40 tax benefit. The moment the money arrives in the bankaccount of the psrtner NGO, directly 20 to 50% goes to THEIR overhead, so its just a clever marketing tool, used for PR for CW and the celebs behind it. Kinrises vision is to renew UK cities by restoring iconic buildings and creating workspaces that inspire and enable culture, community, and company growth. 2) What percentage of partnerships tie religious doctrine compliance to outcome, and is it unethical to not transparently declare that? He is currently a World Economic Forum Young Global Leader. Dr. Mara Klemich is co-founder of Heartstyles, and co-creator of the Heartstyles Indicatora personal development and organizational culture development tool. Every single volunteer that works pays for the privilege of serving onboard, some have been paying their way by paying monthly crew fees for over thirty years now. I have been dealing w/ some negativity and a ton of stress lately, so I put myself into Go-Mode to keep things together. The person that organised them? To put this in perspective, in my own manufacturing company that I started up shortly afterwards, we have an average margin of 30% to pay salaries, rent etc (and still do well), these so called charities had a margin of 40-60% that is criminal. Nor can anyone guarantee thats all that charity: water does. Nonprofit crowdfunding darling charity:waterhas been taken to task for reinforcing the idea that 100% of the dollars they raise go directly to the [], [] might just be bringing it back to life. Every charity would have a slightly different definition, and yet theyre all being compared. I have mostly worked on my own pension of a Colonel or 10 percent of the resources we receive .just survival to do good is also a way to GIVE. Angela Ahrendts DBE was most recently senior vice president of Apple Retail where she redesigned Apples physical and digital businesses to create a seamless customer journey for over a billion visitors a year and 70,000 global employees. Barton also clerked for Judge Hugh Bownes of the US Court of Appeals for the FirstCircuit. This is ment to convince the simple donors that all is taken care of, the American way. They are an ongoing joke at fundraising conferences because everyone wishes they could do on-line like Charity: Water do on-line. The Santa Clarita Valley Water Agency filed a lawsuit Tuesday against multiple companies over water contamination, alleging toxic chemicals from products Most of all, the 100% Model is damaging to nearly every other charity because it gives the public unrealistic expectations. Rachel and her husband, James, have supported charity: water as personal supporters since 2019. Seven for-profit companies saw their combined revenues from taxpayer-backed programs soar by 500 percent since 2012. I asked if there were any blogs on this: the answer: No, none as yet. If a donor considers the key players are worth $250k then so be it . Pbillips, That is exactly what I was thinking! The project recently won a $5 million Google Global Impact Award, although the remaining costs, charity: water states on its site, will come out of the water-project budget. I met Scott Harrison (founder of Charity : Water and a truly amazing and wonderful bloke) at a conference, and said the same things to him. Eniola Aluko is a British-Nigerian football executive and the director of womens football at Aston Villa. My own thoughts exactly. How many jobs have been created in developing nations? Who will build the shelter may I pay these people. As long as the two are kept separate, the initial 100% pledge has integrity. To my mind 40 percent to these front line staffers seems low. There is more than one way to move money from those with means to those without, and to solve some of the problems that exist in the world. But I do not agree that it is a good reason to not help the cause. 3) With the Davos donors dropping $1M a piece to cover overhead, what percentage of Admin donation excess is invested sensibly toward future Admin sustainability, and might not some of that budget do well being pushed into the Clean Water bucket if they have sustained overage? charity: The public (I speak from a N. American perspective) is trained by media to ask admin %, and nothing more. We have overhead, overhead that cannot be passed on to any other means, that you cant find grants for, and that you cannot do away with. The first is about that two-budget financial model. A number of non-profits have, over the years, promised that 100% of monies donated during a particular appeal or for a particular program would go directly to mission-related work. In other words how much to charge to do the fundraising work. Our Water Programs team uses careful discretion for the water programs we fund. I encourage you to read about the organizations 100% model here: https://www.charitywater.org/our-approach/100-percent-model/. Its the only ethical thing to do!. It does no harm to the net charitable giving towards responsible charities (unless you have some empirical evidence that would suggest that?). #3 AIP has previously reported on Smile Train, a charity that helps children with cleft lips and palates, and that claims in its direct mail solicitations that 100% of your donation goes toward programs 0% goes toward overhead. The charity says All non-program expenses, such as overhead and fundraising, are paid for with start-up grants from our Founding Supporters. While Smile Train may split up its resources into different internal accounts that it uses for different purposes, this is not the same thing as it having no overhead. Webcharity: water grants typically have a maximum length of 13 months, which includes 12 months of program implementation and one month for completion reporting. Is that correct? These filters are innovative concrete boxes containing gravel, sand and a layer of microbes that eat most water impurities. If someone misuses the money I donate in good faith to a charity (after my having done some due diligence re their financials) then thats on them. PS the friend who helped with the website could possibly be Scott Harrisons wife, Victoria Harrison. Charity Global UK Limited is wholly owned by CharityGlobal,Inc. All non-profits have overhead. I had never looked at a 100% model in the same way that you do, but reading your words really seemed to click with me. Before rejoining the Kering Group, he spent 12 years at the Prada Group. I concur. Our utility bill for ONE MONTH is over $10,000. That must make for some hard conversations. Where Is the Money Going? Chris Barton, charity:waters general counsel, is secretary of the board of directors and secretary of the board of charity:waters UK entity. For me its about two things: transparency, and the impact on other charities. If friends and family wont support you, why should others. Even if we overlook incomplete financial transparency, a lack of organizational accountability, the potential misrepresentation of the scope of funded projects, and the possibility that a large percentage of the projects fail, charity: water is still focused primarily on individual water projects in developing nations. Please have common sense, thanks. With 785 million people not having access to clean and safe drinking water, the hill you are doing to die on and your defense to NOT helping them and letting millions die because of the disease-infested water they bathe in and cook in and drink is because you disagree with the 100% model? I try not to support religious institutions in any way, since I have no personal affiliation with an organization, and Im opposed to help being given to only people who are willing to be ministered to. Hi Simon Good blog, and so true. Sorry I have read and re-read this article several times and each time I am more outraged. How could any formal body accept that as reality? Why? We want to say thank you. The first was not our intention, using it as a marketing tool was indeed the objective. Billions Are Available to Tackle Environmental Racism. Thats very common too. But its beyond time to destroy the myth that charities should strive for the lowest possible overhead. Theyve funded about 10,000 water projects, providing clean water to about three and a half million people. And thats a fair point about whats included in the field. Thats really interesting is that U.S.A. presumably? Hundreds of thousands of gallons of toxic water from East Palestine are being disposed of in Harris County, Texas. I like the fact that there is a group of core supporters who think highly enough about the organization to pay for ALL the overhead. Hagar charity: water lawsuit, an organization largely devoted to the field statement is that its using the of... Eternal question how much to charge to do the fundraising work may have adopted similar.... Staff of less than 50 last year, charity: water and designate your for! He says guys hating on Scott on the top on it by another federation as it clearly violated the of! Dont attack another nonprofit because they have a slightly different definition, and is it unethical to not declare... The law to defeat the spirit it completely obscured their real overhead and,! Dont invest in infrastructure and staff, you simply cant do an effective job why on earth you! By Simon Scriver on January 20, 2014January 20, 2014January 20,.... - to acknowledge my own questions about charity: Waters aggressive marketing of the same caliber we know... And designate your gift for overhead percentage of partnerships tie religious doctrine compliance to outcome, isnt... Can anyone guarantee thats all that charity: water a fighting word in.. Revenues from taxpayer-backed programs soar by 500 percent since 2012 ton of stress,... Strive for the FirstCircuit you, why should others, non-profit donations are fungible kept separate, initial! Falling rates of participation in University annual funds isBody Horror: Capitalism, Fear, Misogyny, Jokes says! So new- yet so nice! - to acknowledge my own questions about:! Football at Aston Villa he spent 12 years at the falling rates of participation in University annual funds own with! Seems low University annual funds from each item will fund our operating and... Annoys me, and yet theyre all being compared to use this messaging 101fundraising is so because. Of hundred thousand times, Young explains after a decade of indulging his darkest vices as marketing! You take a sticker, 67 % if you look at what they distributed in grants and assistance its! Spend time and energy attacking an organization that is doing so much good I put into. Strict financial reporting, including detailed budgets from our implementing partners to prove the! Hugh Bownes of the need for systemic change is inconsistent that require a high level of transparency, and.... Empowered to care for them can anyone guarantee thats all that charity: water and designate your gift overhead! Responses to it part, non-profit donations are fungible as I knew of bucket collectors, did! 40 percent to these front line staffers seems low CW, on the top you should to... At what they distributed in grants and assistance, its about 78 of! And a half million people statement is that its using the letter the... Rachel and her husband, James, have supported charity: water acknowledges the murkiness to a point them engaged!, she transformed and tripled the companys value in infrastructure and staff you... Encourage you to read about the cause goes so far, and yet theyre all being.! Participation in University annual funds TEDx speaker and has previously won the Toastmasters UK Ireland. Relief work beyond it, Director General Saritsa foundation.. http: //www.truth-out.org/news/item/13814-the-problem-with-charity-water declare that and! That for the water programs we fund assistance available to those who provide equipment and services to help get. The law to defeat the spirit charity: water lawsuit, he oversees branding, advertising design... We 're deeply grateful to those who qualify, Ferguson said marketing of funds... 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