Charities need support, not misrepresented scrutiny.
In a recent article by CBC journalist Bonnie Allen claims that the Canadian National Institute for the Blind (CNIB) spends 52 per cent of every dollar donated on fundraising. In her article, she frequently suggests that CNIB’s campaigns are not urgent, and more money should be spent on programming.
Through a quick CRA search, I can see that this claim is severely misguided. In the audited financial statements CNIB submitted to the CRA in 2021, less than 25 percent of their expenses are attributed to fundraising or administration. In 2022, when Canada hit the highest inflation rate in over forty years, CNIB was able to keep their fundraising and administrative expenses under 28 percent. CNIB also has its financials posted on its site, audited by Ernst & Young.
The article’s only source, Charity Intelligence, breaks up CNIB’s donations into two categories: private and public funds. To someone outside of the non-profit sector this may make sense; however, government funding is simply another portfolio piece for most organizations and professional fundraisers. Receiving government grants is tedious work that is rarely successful, and it requires as much fundraising support as private donations. Like private grants, government grants require hours of work on applications, meetings, project development, and consultation. Thousands of charities apply for a miniscule amount of public funds. Therefore, calculating overhead costs using only private donations – while removing a huge source of revenue the organization depends on to operate - and comparing that to unaltered expenses is nonsensical.
Reporting of this nature is not just a misrepresentation of the truth, it is harmful. Misinformation about non-profits erodes the public’s trust in the sector. Charities are doing everything they can to best use donated funds, they are constantly pushed to do even more to provide societal supports. By relying on inaccurate information, less and less people are motivated to give. In fact, due to inflation, many donors have had to cut their support for their favourite cause, leaving charities scrambling.
The biting at the bit to do a take down of a non-profit bothers me deeply, especially as a professional fundraiser. Charities work diligently to serve our communities. Since COVID hit, organizations have experienced a sharp decline in volunteers, leading to more hires. Fundraising events and other sources of revenue were compromised, and charities experienced an exponential increase in people looking to access services. Inflation also hit our sector hard and affected our donor’s ability to give.
Charities and the communities we serve are going through a turbulent time – the last thing we need is misinformation putting our already stretched budgets in jeopardy
