I read with interest Dr Philippa Martyr’s recent article in The Catholic Weekly, “What is the best way to donate to those in need?”
It is an excellent question because people rightly want their donations to make the greatest possible impact. What I want to suggest, though, is that focusing too heavily on administration costs is the wrong question—or at least not the whole question.
It is true that administration can feel like a drain on resources: every dollar spent on salaries, fundraising, or reporting is a dollar not spent on a frontline project. But the reality is that no charity can send 100 per cent of funds directly to projects.
If an organisation claims otherwise, it is misleading donors. Administration is necessary. It ensures good governance, accountability, and the safe and effective delivery of aid. It also allows the charity to employ qualified staff and to build systems that prevent misuse and ensure that projects are sustainable.
Consider the opposite scenario: a charity with no administration costs and no professional staff. There would be no oversight of how funds are spent, no compliance with government regulations, no one ensuring projects are actually completed, and no mechanisms for keeping donors informed. Few people would trust such an organisation with their hard-earned money.
This leads to what I believe is the more important question for donors: Do I trust this charity to carry out the work I want to support, and to do it faithfully and well?
Every charity has a different structure, so comparisons are rarely like-for-like and are often unhelpful. Some charities spend 20 per cent on administration, others 40 per cent, some even 60 per cent.
But the scope of work varies, and the investments required differ widely. The question should not be primarily “how much do they spend?” but rather, “what is their return on investment?” Would we rather a charity spend $1 million to produce $6 million for projects, or spend $50,000 to produce $200,000?
Administration also includes fundraising, which is often misunderstood. Without communication, no charity can survive. Donors give less, and less often, when they are not kept informed. Some prefer printed materials; others prefer digital communication.
At ACN, we send print newsletters because they are far more effective at engaging our donors and building trust, which allows us to raise funds for the work we exist to do.
One approach may cost more than another, but both are legitimate if they maintain transparency, keep benefactors connected, and support the mission.
This is why ACN is deliberate about publishing newsletters and reports, providing project updates, and keeping benefactors closely linked to the people and communities their donations support. Transparency builds trust, and trust sustains generosity.
History also matters. ACN began in Australia in 1968 as a simple volunteer-run operation.
Today, we employ staff not to enrich ourselves, but to continue and expand that mission.
The work of a modern charity is vastly more complex than it was half a century ago.
Compliance, IT security, data privacy, communications, and international financial regulations all require professional management. Without these safeguards, donations cannot safely reach those who rely on them. We could not do anywhere near what we do on a purely volunteer basis, and the return on investment has only grown with the right staff.
Charitable work is not simply about moving money from one place to another. It is about ensuring that the gift of the donor is received with gratitude, used responsibly, and transformed into hope for those who suffer. Administration—far from being a “waste”—is what makes that transformation possible.
So yes, ask your favourite charities about administration costs. But ask more than that.
Ask about their mission. Ask whether the organisation is transparent. Ask whether you trust them to do the work in your name.
At the end of the day, the percentage of funds going to projects matters, but the deeper question is whether the charity is worthy of your trust.
When that trust is well-placed, the impact of your generosity can extend far beyond what any single donation might suggest.
