Why Are Administration Costs So High ?

I had a coffee with an interesting business contact on Friday who has a relative within a Global Charity Organisation. We both laughed at the perks this individual enjoyed. Tax Free Income. First Class Travel. The list goes on and on. Sounded like a pretty great job !

This is the problem I see with many charity organisations. They simply soak up so much of the giving (cash) into running the machine. This is wrong and should be stopped. In particular there should be full disclosure of the cost (on a percentage basis) of every dollar of giving that goes to administration. The shroud of secrecy around some organisations needs to be lifted.

For people that think they are doing good in donating to such organisations just stop and think. Work out the impact of the giving. Is it going to a beneficiary or is it going to pay someone's over inflated wage.