The ETOlutionist

Perception as a Reality?
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Posted by: The ETOlutionist 2/21/2008 10:01 AM

Fighting perception can be an uphill battle.  When it comes to American’s perceptions of how nonprofits spend donations, the nonprofit world has a lot to make up for.  A recent study by Ellison Research found that Americans believe that too much of their donated dollar is going to cover operational expenses.  Nearly 62% of Americans think that too much money is spent on costs associated with fundraising and administration.  According to the study, the average amount Americans feel nonprofits should spend is 22.4 cents on the dollar, but in reality, Americans believe that groups are actually spending 36 cents.

What organizations should be most concerned with is that the study found that 22% of Americans have a highly negative view of charities’ financial efficiency.  Twenty two percent.  One fifth of Americans.  Doesn’t sound like a lot, but when you think in terms of donations, having to fight this perception or belief is yet another challenge when it comes to fundraising and meeting goals.   

We all know overhead and operational expenses exist.  Any organization or business needs them to function. But as Ellison president Ron Sellers points out, whether the belief Americans feel is accurate or not, their perceptions very well may influence their giving decisions. Like many issues, Americans tend to categorize charities ias one in the same.  Which is why many worry about the fall-out of recent scandals with the Red Cross and others and the affect of public scrutiny on legit and accountable organizations.  Fighting perception is an uphill battle, but one that can’t afford not to be fought. We can’t say it enough.  Accountability, accountability, accountability.  Say it.  Do it.  Show it.  And prove those perceptions wrong.  

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