Charities, Donations, Events, Expenses and Supporting the Needy!!, Dr. Emdad Khan
Alhamdu Lillah, Allah SWT has given us opportunities to work as a volunteer for Charities.
Before, we talk about a charity let us talk about our own house or a small business.
In our own case, a rental house, or an owned house, we have a lot of bills to pay, phone/ cell phone, heating/ cooling, gas, car, etc., These may take from 20 to 40% of our incomes
For a charity, most of the cases same and has many extra items, such as events, speakers, hall rental, insurance, websites, newsletter, banking, flyers, IT, cell phones, laptop tops
Case 1: expenses 10% only for those small charities, who has no employees, no office or rental, still they pay for events, websites, flyers, banking, accounting, CRA tax filing, fundraising, etc.
Case 2: 20 % a charity owns its building or has rental, and up to 10 employees, plus all things as case 1 needs
Case 3: up to 30%, all items as case 2 plus employees up to 30 and a modest building, and extra cars, transport, travel, etc.
Case 4: 40 to 50 % all items as case 3, and larger charities, competitive salary and benefits for CEOs and employees, cars, travel, events, insurance, banking, computers, cell, heating, cooling
So, charities are like businesses or like owners of larger and luxury housing projects.
So let us be realistic, even with no employees, no office, small charities have to spend at least 10% of their incomes to operate as a functional charity serving.
For a charter with an office, employees must spend 20 to 30% to operate as normal business.
We understand the concerns of donors, but yes like some businesses, some charities are conservative, some are moderate, and some are like a large business. Some are efficient, some are not.
All information for every registered charity is available on CRA websites, its income, expense, employees, assets, liabilities. CRA has its own duty to time audit the charities if they are function by following CRA Charity rules. They have the power to revoke or suspend a charity.
We request everyone to volunteer time in the charities, we like or the cause dear to us. If we get involved we will be amazed, how challenges are the situations a charity is to run it’s to the satisfaction of all donors and raise necessary funds. Please support them and provide realistic and constructive feedback to improve it is operation and functions.