Online directory Charity Choice has launched a free service that allows you to generate reports for 10,000 UK charities to see how much of every pound you donate is spent on charitable activities. It also breaks down other areas of spending such as day-to-day running costs and fundraising activities.
Charity Choice said the top 100 charities spent an average of 78p in every pound on their charitable activities, while 21p was spent raising more income.
The remaining 1p was spent running the charity, including staffing and office costs
The reports also look at each charity’s income and expenditure for the past five years as well as their spend on core activities over the period, and how successful their fundraising activities have been.
The directory said on average, every £1 the top 100 charities spent on fundraising raised a further £5.83 worth of funding
“People are often sceptical about how charities spend their money and how much of the total donations are actually used for charitable work,” said Polly Avgherinos, the head of Charity Choice. “But it’s a myth that most of the money is used internally or that much of it is wasted.”
The reports are compiled using the charities’ own annual accounts, verified by independent external auditors.