Hard News by Russell Brown

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Hard News: Where your money goes

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  • Hilary Stace,

    Hot information from the Charities Commission as a response to all this.

    Wgtn • Since Jun 2008 • 3229 posts Report Reply

  • webweaver,

    wow - that page from the Charities Commission website pretty neatly summaries the utter looseness of the rules governing charities in this country.

    No rules about how they choose to spend the money, no restrictions on how much a fundraising agency can charge, no audits of their financial statements required, no particular accounting standards or formats required, no restrictions on business arrangements that charities make with other companies, no rules about what is "reasonable" for a charity to spend on fundraising, no rules about how much you can pay staff, no "ratio" requirement because there are no consistent rules on how they have to present their financial information.

    Good grief. It's a scam just waiting to happen. I'm actually surprised there aren't more bogus "charities" intent on ripping off donors - or perhaps there are, and we haven't realised the extent of it yet.

    Wellington • Since Nov 2006 • 332 posts Report Reply

  • Islander,

    Hilary - I've bookmarked that site, many thanks.
    webweaver - your ultimate comment is, erm, right on the money-

    Big O, Mahitahi, Te Wahi … • Since Feb 2007 • 5643 posts Report Reply

  • Hilary Stace,

    The Charities Commission was set up a couple of years ago to shine some light on the charity sector in NZ as there was very little data. No one had any idea how many there were out there and what they did. All the CC require is some basic information about each organisation in return for a registration number (and they are also very helpful). However, even this timid start was heavily criticised in that whole nanny state stuff, so to ask more info or to try more regulation was unlikely in that environment.

    Wgtn • Since Jun 2008 • 3229 posts Report Reply

  • Jeremy Eade,

    Mostly it is asking you a question that if you say no to you feel bad:
    "Do you care about global warming?"

    If you say no to that one you are a fantasist. Global warming isn't a
    charity.

    auckland • Since Mar 2008 • 1112 posts Report Reply

  • Islander,

    While I deplore his use of an archaic title, I really appreciate the PM's scientific advisor taking a firm & scientific stance on global warming-
    but if anyone accosts me and asks whether I care or not (it's happened 3 times) I simply say "None of your business-"

    on a slightly different subset of this thread: the best collectors I know of - and yes, I generally donate to them - are the variety of people who sit at a small table in the outside entrance of the Oamaru South Hill New World. They never hassle: they smile if you meet their eyes, and smile even more if you buy-their-raffle/sign-their-petition/donate to their-almostalwayswellknown-cause, and murmur, Thanks! or (twice!) Kai te pai! or (once) Gracias! They just sit there, clearly identified, often with a neat wee display indicating just what specific thing they are collecting for...and they're all vetted by that New World management.

    Big O, Mahitahi, Te Wahi … • Since Feb 2007 • 5643 posts Report Reply

  • Hilary Stace,

    That must happen at New Worlds all over NZ as that is what it is like at Thorndon New World. Regular collectors there and once a year I stand there too (we don't use a table). You get a really sore back and sore arms but it is a good opportunity to observe humans, and try and predict who will be the next donor. More likely to be the young, the old, the non-suited and the lower socio-economic.

    Wgtn • Since Jun 2008 • 3229 posts Report Reply

  • Islander,

    Heh, I fit the last 3!
    All I can say is - well done New World - and the collectors!

    Big O, Mahitahi, Te Wahi … • Since Feb 2007 • 5643 posts Report Reply

  • Jeremy Eade,

    but if anyone accosts me and asks whether I care or not (it's happened 3 times) I simply say "None of your business-"

    It's everyones business..its global warming. It's a movement towards "commonsense". It's not a charity its an awakening. How can you get upset about peolpe trying to alert you to our horrific pollution problems that we are literally asking our kids to deal with us.

    Charities are an absurd antiquated stopgap for the large holes in our tribal umbrella but don't get that confused with the environmental movement.

    Unchecked CO2 levels will inevitably put an end to all charities and this blog.

    auckland • Since Mar 2008 • 1112 posts Report Reply

  • Jeremy Eade,

    While I deplore his use of an archaic title, I really appreciate the PM's scientific advisor taking a firm & scientific stance on global warming-

    Absolutely agree , in fact it's a huge story given that his own appointed advisor is telling him to wake up fast.I thought he came in on a campaign of change.

    auckland • Since Mar 2008 • 1112 posts Report Reply

  • Sofie Bribiesca,

    All I can say is - well done New World - and the collectors!

    I know New World in Freemans Bay is a franchise and suspect they all are, but a code of ethics may be established for all of them. Outside Foodtown where we live, a sign is displayed announcing No hawkers or musicians, and because of this, t'other half donated to the fine old guitarist playing cheerfully beside the sign yesterday.

    here and there. • Since Nov 2007 • 6796 posts Report Reply

  • Sofie Bribiesca,

    in fact it's a huge story given that his own appointed advisor is telling him to wake up fast.

    The man himself.

    here and there. • Since Nov 2007 • 6796 posts Report Reply

  • Sofie Bribiesca,

    Does the Harold read Public address?
    I think so.

    here and there. • Since Nov 2007 • 6796 posts Report Reply

  • Sofie Bribiesca,

    With all due respect to Mr Brown from the Editor to boot

    here and there. • Since Nov 2007 • 6796 posts Report Reply

  • Russell Brown,

    The Howlett Foundation angle is still the most troubling part to me. I can't imagine a good explanation for the way it has been run.

    In the HoS story, Howlett himself has pled ignorance of its financial affairs, explaining that he's been in the northern hemisphere -- which makes the fact that Helson and Sunderland charged the trust $9000 in "rent" look strange, especially on top if the $39,000 in salaries the pair of them drew.

    I'd also be interested in a reconciliation of the $60,000 shown as being paid to the Howlett trust by Invitiation Only Events vs the $28,000 shown in income by the Howlett trust's own statement.

    Was there some other cost in the transfer from the events company to the trust that isn't immediately visible?

    And yes, it was nice of the HoS to acknowledge the source of the story.

    Auckland • Since Nov 2006 • 22850 posts Report Reply

  • Hilary Stace,

    Our board (of voluntary board members) had a full-day board meeting yesterday and discussed the implications of this spotlight on KidsCan and the general current scrutiny of charities on our own organisation. Although we are mainly a volunteer organisation we do have some paid staff, and staffing and the associated infrastructure require significant and time consuming fundraising. However, providing effective and sustainable services does have a cost and we talked about how to make this information more accessible and transparent for members, donors and the public. And how records could acknowledge more of the voluntary labour and donated goods which are not usually recorded.

    Wgtn • Since Jun 2008 • 3229 posts Report Reply

  • Jackie Clark,

    One of the things that has appalled me, Hilary, recently is that businesses charge charities for their services. For example, the companies that are the middlemen for the phone companies , and who took what seems like a considerable cut for donations that were texted through for the Telethon. Why do more businesses not give their services for free, I wonder? Is it a sign of the times? Are we unrealistic to expect that when we give to charity, the money will get to those whom it's meant for? I find it all very distressing. I work for a charitable trust - ostensibly - and I know how much funding goes to covering our Head Office. On the other hand, all the money that our parents give to us goes directly to us, to buy educational resources. Through our employer, we have access to discounted rates for several services, but that's more about that there's 110 kindergartens using the same providers. We are charged as businesses for our phone and power and such. What a scam if charities, who provide for the "needy" are in the same position.

    Mt Eden, Auckland • Since Nov 2006 • 3136 posts Report Reply

  • Sofie Bribiesca,

    we talked about how to make this information more accessible and transparent for members, donors and the public. And how records could acknowledge more of the voluntary labour and donated goods which are not usually recorded.

    Surely your records could show a comparison ( in monetary terms )of voluntary time and work achieved or used that isn't paid.

    here and there. • Since Nov 2007 • 6796 posts Report Reply

  • Steve Barnes,

    One of the things that has appalled me, Hilary, recently is that businesses charge charities for their services.

    The thing that appalls me is the fact that this practice is considered ethical in the current businesses model. There are plenty of other monetary avenues business can follow without slotting themselves into the finance stream of reputable charities. However, when the public is so tuned to commercial consumerism, how else can charities get themselves noticed?.
    I'm sure there are plenty of businesses out there who do donate a hell of a lot of stuff for free to all kinds of beneficiaries, it's deductible. Way to get rid of surplus stock and let the hard working taxpayer take the hit whilst they bask in the glory of self richeousness.

    ;-)

    Peria • Since Dec 2006 • 5521 posts Report Reply

  • Hilary Stace,

    Good idea, but how do you quantify and put a monetary value on, for example, being a chairperson of a committee, a board member, helping with a holiday programme, answering phone calls, giving talks to schools or community groups, driving people to events, attending meetings, filling out fundraising application forms, selling raffle tickets, or holding a collecting bucket? All of which could take from a few minutes to several days, and be regular or one offs.

    Wgtn • Since Jun 2008 • 3229 posts Report Reply

  • Sofie Bribiesca,

    but how do you quantify

    Even if it's a few minutes or several days, record it accordingly. Time sheets, (popular in the 70's) Time is valuable and should be recognised especially with charitable work imo.

    here and there. • Since Nov 2007 • 6796 posts Report Reply

  • Hilary Stace,

    That above was a reply to Sofie.

    Steve, unfortunately, in the real world businesses have to make money to survive and charities need to buy their services eg rent for properties, accounting and IT expertise, hotels for conferences. That is part of the professionalisation of charities - they need staff who can negotiate with business to get the best deals.

    But there are also great pro bono, discounting, sponsorship and other deals going on all over the place too. Mutually beneficial.

    Wgtn • Since Jun 2008 • 3229 posts Report Reply

  • Steve Barnes,

    Hillary, isn't that what I said?... sort of...

    Peria • Since Dec 2006 • 5521 posts Report Reply

  • Islander,

    Jeremy Eade, your response to my 'None of your business' comment is passionate but mistaken. I am personally concerned and involved over human-induced global warming but it is not the business of any stranger whether I care about this or not. Paticularly as aforesaid stranger (the first one) wanted personal details and suggested making a contribution, after I had said "Why?" in answer to their question.

    I spent some interesting time on the net learning quite a bit about this method of fundraising...

    Big O, Mahitahi, Te Wahi … • Since Feb 2007 • 5643 posts Report Reply

  • Hilary Stace,

    Steve, I wasn't disagreeing with you.
    Thanks for suggestion about time-sheets Sofie, and I'll pass it on. But I have a feeling that a suggestion about more paper work will not be taken up with enthusiasm.

    Wgtn • Since Jun 2008 • 3229 posts Report Reply

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