When I look at this chart, it's almost as if 10 years ago the lights went on and people in the charitable sector decided they were leaving money on the table. I mean, the government says you can keep 35%, maybe even 50%, and costs have been shooting up ever since. The conventional wisdom in the charitable sector is that it's only at 70% that the red flag goes up and you can be sanctioned.
I know the officials are sitting behind me, and I'm certainly interested in hearing what they have to say about this.
If you look at the chart, donations are not even matching GDP; they're up by 15%. Fundraising and administration costs defy gravity. They're actually dwarfing donation growth. And donors are flat. Some of these high-priced fundraising types are certainly taking a lot of money, but they're not earning their money. That's what happens when you don't have reasonable limits anywhere. This is graphic evidence that charities aren't leaving money on the table; they're taking it home, more and more.
I think the responsibility lies with salary secrecy. If we can get around secrecy, and rules that let charities keep between 35% and 70%, we'd be a lot further ahead.