Article Abstract:
Charities have to deal with criticisms relating to their administrative costs, and there are wide variations from one charity to another. Charities have sought to cut or hide administrative costs due to pressure from the media and donors. Administrative costs canm be measured as a proportion of total spending, and this is a key benchmark, but there are a number of factors that affect costs. Charities have lower costs if they have large donations, since these are cheaper than collecting many small amounts.
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Article Abstract:
UK charities seeking protection for the income from their funds against inflation have also to think of the implications for their capital. It is possible both to protect capital and income but there may be initial costs. A coorect balance has to be achieved between bonds and equities. Constraints on asset allocation should be less of a problem with changes in the law proposed by the UK government. This will allow charities to invest a greater proportion in equities.
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Article Abstract:
It is difficult to obtain accurate data on the financial performance of United Kingdom charities. The Barclays/NGO Finance Charity 100 Index is a move which helps remedy this lack of data. The index was launched in 1996 and measures performance from 1st qtr 1992. Some charities have gained new income sources as local government contracts have been offered, but competition has increased and the number of contracts has diminished.
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