Measure for measure
One ratio does not fit all. Cathy Pharoah and Tom McKenzie set out models for assessing fundraising efficiency in different types of charity
With the latest figures showing the economy is far from out of the woods of recession, many of the major spending charities may be reviewing their budgets again. The Institute of Fiscal Studies recently indicated to a sector audience that the economy might be permanently smaller [1]: in the medium-term government would certainly have little room to manoeuvre, because of debt repayment and rising social security costs. Public spending constraints will have to fall on other areas of welfare spending, and are likely to include services provided in the charity sector. This means that charities might need to invest further in raising funds from private sources just at a time when their general budgets tighten. With pressure on revenue, they will be looking hard at the returns on every extra pound of fundraising investment.
Author: Tom McKenzie
Tom McKenzie is a research officer specialising in economic analysis at the ESRC Centre for Charitable Giving and Philanthropy, Cass Business School.
Author: Cathy Pharoah
Cathy Pharoah is co-director of the ESRC Research Centre for Charitable Giving and Philanthropy (CGAP) at Cass Business School.
www.cass.city.ac.uk/philanthropy
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