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Richard Krooman


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Doing the math

Quite a few people in the replies to Dan Pallotta's talk have noticed that the math shown is somewhat odd from time to time.

So let's discuss this in a seperate conversation rather than in the video thread.

My personal opinion (in this post) is irrelevant, I'll take a possition myself in the debate though but want the starting post to be as neutral as possible.

Because I would like everyone to use the same numbers I've went through the vid and wrote down all numbers he uses on his slides (I made the 'topics' of the slides myself as his slides didn't have any topics):
12% poverty in the USA

Salary in profit vs non-profit organisations:
Stanford MBA (at age 38) = 400.000 $
CEO of a medical charity = 232.658 $
CEO of a hunger charity = 84.028 $

AIDS rides bicycle (over a course of 9 years):
182.000 cyclists raised 581.000.000 $

Charitable giving in USA:
2% GDP (300 billion)

organisations crossing the 50M $ annual revenue barrier since 1970:
144 non-profit
46136 profit

Launch AIDS rides:
50.000 $ (risk capital)
108.000.000 $ after 9 years (and after expenses).

Breast Cancer 3 days:
350.000 $ investment
194.000.000 $ after 5 years (and after expenses).

5% overhead for a bake sale.
40% 'overhead' (or investment in growth) in a company.
(would anyone know what a non-profit organisation spends on average on 'overhead'?)

Current charity balance (where the 2% GDP goes to):
20% of charity goes to Health and Human services. (60Billion $)
80% of charity goes to Religion/Education/Hospitals. (240Billion $)

3% GDP (450Billion or an added 150Billion ontop of the before mentioned 2%).

Topics: charity math

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    Mar 14 2013: Despite their different missions, the Disabled Veterans National Foundation, a veterans charity, and SPCA International, an animal charity, have a lot in common.

    They have both received F’s from CharityWatch, the charity-ratings group, because most of the money they raise from the public pays for direct-mail operations.


    How to Calculate a Charity Program Spending Percentage
    Divide the amount the charity spent on programs by the total amount it spent, and multiply the result by 100.

    For example: If an organization reports spending $750,000 on programs while spending a total of $1,000,000, dividing $750,000 by $1,000,000 produces the decimal number 0.75, and multiplying that by 100 produces the result of 75% (its program spending percentage).

    Financial Ratings Tables
    At Charity Navigator we recognize that different types of organizations work differently. This variation isn't a bad thing. Rather, different types of charities have different resource and spending requirements. For example, our research shows that museums exhibit above-average administration costs as compared to other types of charities.


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