IN A NUTSHELL:
If you donate and add Gift Aid to your donation, then your entire donated amount goes towards the cause you selected and all of Muslim Charity’s admin and fundraising costs are covered from the Gift Aid that we will receive.
However, if you do not add Gift Aid then 91% of your donation goes towards the project and 9% goes towards admin and fundraising costs. This is why we strongly recommend donors to tick the ‘Gift Aid’ box when donating!
IN MORE DETAIL:
WHY DO WE SPEND 3P ON ADMINISTRATION AND OPERATIONAL COSTS?
We take your donations seriously; charity is not just about handing funds over to beneficiaries. If that were the case, we would be fulfilling the role of a money transfer service. Furthermore, if we did not have systems and processes in place, we could very easily – albeit mistakenly or innocently – give aid to the wrong hands or those not fully deserving.
The 3p spent on administration and operational costs goes towards a comprehensive operational management framework that we have in place to ensure that the aid we provide goes to the most deserving and needy people. This process ensures that:
WHY DO WE SPEND 6P ON FUNDRAISING COSTS?
When receiving donations, there are some costs that simply cannot be avoided. For example, if you donate using your credit or debit card then transaction charges are usually between 1% and 3% (for credit cards) and 0.3% to 2% (for debit cards) depending on the type of card used. Similarly, there are fees associated with Direct Debits (between 1% to 2% of the donation amount) depending on the medium used to set up the Direct Debit.
Furthermore, there are costs associated with organising fundraising events, dinners, printing fundraising brochures, material and also running and maintaining a website and online donation platforms. And in addition there are also costs associated with having an effective and efficient fundraising team to create awareness about the lifesaving and life-changing work we do as an organisation and to encourage people to donate towards some of our fantastic causes which leads to more donations so that we can create a bigger impact to the lives of the needy around the world.
These are some of the areas where the fundraising costs go to and we would simply be lying if we were not open and transparent about these. Since your donations are an ‘Amanah’ (trust) it is therefore imperative that we are honest about these costs. Having said that, if you add Gift Aid to your donation then all of these fundraising and administration costs are covered by the Gift Aid that Muslim Charity receives therefore ensuring that your donated amount goes directly to the cause you have chosen.
WHY IS GIFT AID SO IMPORTANT?
We therefore strongly recommend donors to give their Gift Aid declaration if they are UK taxpayers as this enables us to spend more directly on charitable programmes and activities whereby our other costs are covered entirely through the Gift Aid that Muslim Charity will receive.
Note: The above figures are correct as per our 2020 accounts submitted to the Charity Commission.
Muslim Charity encourages its donors to study our annual accounts which are publicly available on the Charity Commission website here.