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Costs of administration and management
The salaries of senior staff, together with the costs of managing and administering an organisation are often of great interest to donors.
Many donors cling to the belief that charities should be run by well meaning individuals who work for little, if any, pay. Of course the reality is that the work many charities now undertake is technically complex, involving the management of large networks of staff and volunteers, often in many different countries.
The complexity of such organisations requires that they be well managed if the cause is to be addressed. The payment of professional and competitive salaries is therefore essential and while these are often rather lower than in the commercial sector they are nonetheless a significant expense.
It is therefore unrealistic to expect organisations to spend very little on management.
Typically charities spend between 5 and 13% of their total expenditure on this.
More on Charity costs
- Costs of administration and management
- What is an acceptable figure?
- Why can some charities claim to have no administration costs?
