Friday, 12 November 2010

How the money works

A friend recently asked me how much money the charity gets after paying my airfare so I thought I'd let everyone know exactly how it works: they don't pay me to do anything! And they get all the money raised. And then a bit more.

First of all, I decide on what event to do on my own. I don't respond to charity advertising saying "do this event" or "guaranteed places" because I am looking for a charity with low fundraising overheads. So about two weeks before the marathon, East London Community Foundation was the charity that had passed all my checks! I look at their accounts, I look at their overheads, and I look at their impact. If it was a larger charity, that did a lot of fundraising with individuals like yourselves, I would look at their fundraising ratio - that is, how much it costs to raise a pound. But as ELCF get their money from trusts, government and major donors, they don't have costs for things like advertising campaigns and producing ribbons etc.

Next step, because this is the first time ELCF have had someone fundraise for them as an individual, we need to set up an online giving page. There are a lot about as it's a money making exercise. The people behind the websites take commission from every donation. But not Bmcharity, which is why ELCF chose them. They're good like that when it comes to money.

And yes, if you're a UK taxpayer, you end up giving them a little bit more, thanks to something wonderful called Gift Aid.

So back to the cost of the airline ticket. That's me! I paid for the airfare, the hotel, the entry fee and any running costs! Same as last year in Berlin, where I even flew over a first aider and a support crew! Yes I could just donate that money straight to charity and not run a step, but where's the fun in that. But also, I know about great charities and the causes they do, and I have a large number of contacts that I could spread that awareness to. Even if I got £3 from all of them it would be great. And those who can't give, might read this, and remember, and when they become a successful City worker, might remember to do a little something for a great cause.

So there's the finances laid bear but please ask if you have more questions.

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