Have you ever raised the question ! Charities with limited resources often spend more % than their rich fellow charities to count the money (i.e accounting). In second day of my work with a charity CEO, I asked him how much he spends to count the money and precisely what proportion of their income? In this instance, two full time people were employed in accounting where organisational annual income was around £600k. Those work in London are not going to be surprised to hear that only payroll cost of employing these two staffs were around £ 60k. My follow up question with the CEO was “will you spend 10% of your income to count the money if you were running your own small business ?” Offcourse the answer was “no”, then why this level of spending has to be justified in charities. I often hear that this is because donor, as they are very demanding etc etc. This goes back to the essence of our existence – do we exists for staff or for the mission we believe. If the answer is mission, then there are plenty of options to minimise these costs – why don’t you start exploring now, its not rocket science.

You can visit Charity Accounting Services who provide affordable accounting services mainly to smaller charities/NGOs in Greater London area.

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