In light of the growing number of people in need both nationally and internationally, Worth magazine has, for the second year, released a list of the 100 charities that use donations most efficiently for mitigating that need.
In its December issue, the financial magazine rated a range of environmental, relief, health, human services and arts charities on how they spent an average of $100 in donations, broken down into percentages of four categories: programs, administration, fund raising and future reserves.
Groups that spend upward of $75, or 75 percent, on actual services are generally considered the most efficient.
The focus was on charities that are nonpolitical in scope, have a national or international scope, and have a proven track record of at least three years. Last year, the magazine looked at only those charities that are required to make their financial information public, which excluded religious organizations since they are exempt from that requirement.
This year, however, Worth made an exception and included five of the nation’s largest faith-based charities — America’s Second Harvest, Catholic Charities, Lutheran Services in America, the Salvation Army and Volunteers of America.
While Southern Baptist groups were not considered in the list, The Alabama Baptist used Worth’s criteria to compare the International Mission Board (IMB) and North American Mission Board (NAMB) to other findings.
Both IMB’s and NAMB’s main sources of revenue are the monies that come in through the Cooperative Program (CP) and the yearly special offerings — the Lottie Moon Christmas Offering (LMCO) for overseas missions and the Annie Armstrong Easter Offering (AAEO) for North American missions work. Both boards said 100 percent of the money from the yearly offerings goes directly to support missionaries on the field.
David Steverson, vice president of finance and treasurer for IMB, said that in breaking down $100 of money from sources other than LMCO — mainly the CP and undesignated donations — in the 2002 budget, $84.80, or 84.8 percent went to support overseas missionaries. The rest, 15.2 percent, or $15.20 went to stateside administrative costs, which would include fund raising. For the 2003 budget, the breakdown is $84.93 to missionary support and $15.07 for administrative costs. Currently, there is no designation for reserve funds.
NAMB’s Marty King, director of public relations, said NAMB’s sources of revenue other than AAEO included monies from CP, undesignated donations, and income from investments and interest.
For every $100 from these sources, $74.13 is spent on supporting missionaries and programs such as church planting and disaster relief, $12.68 is spent on administrative costs. Although NAMB also has no designation for reserves or specific fund-raising ventures, $13.19 is spent on NAMB’s broadcast operations in Fort Worth, Texas.
In looking at the religious organizations that did make the list, America’s Second Harvest, which funnels food to families and soup kitchens — two-thirds of which are at churches and other houses of worship — spends $95 on services, $2 on fund raising, $1 on administration and $2 on reserves.
Catholic Charities, the nation’s fourth-largest charity with $2.6 billion in revenue, spent an average of $88 on services, $1 on fund raising, $9 on administration and $2 on reserves.
Lutheran Services in America, rated by the Nonprofit Times as the nation’s largest charity with $7.6 billion in income, spent $88 on services, 30 cents on fund raising, $8 on administration and $4 on reserves.
Volunteers of America, a Christian group that serves 1.4 million people each year, spent $85 on services, $2 on fund raising, $9 on administration and $4 on reserves.
The Salvation Army, perhaps the nation’s best-known charity, with $1.9 billion in income, spent only $72 on services, as well as $4 on fund raising, $10 on administration and $14 in reserve funds.
To see all of the top 100 charities, visit Worth magazine online at www.worth.com.
(TAB, RNS)
Share with others: