Economics question on charities
January 23, 2015 at 2:11 pm
(This post was last modified: January 23, 2015 at 2:31 pm by watchamadoodle.)
Sorry if mathematics isn't the best sub-forum for this question.
Currently when I am choosing a charity, I look at the percentage spent on advertising and administration. If those percentages are low, then I consider the charity better.
Sometimes I wonder if high advertising or administration might be a sign of good management instead of bad management.
Any thoughts?
EDIT: A charity with higher advertising might have a higher growth rate of donations each year. It seems like the growth rate of each charity needs to be a factor when comparing the percentage of advertising and administration? Maybe the amount of charitable goods delivered in this year should include a prediction of all future charitable goods? So a growing charity might have a higher percentage of advertising when divided by that years charitable goods, but it would have a lower percentage of advertising when divided by all future years' charitable goods?
Currently when I am choosing a charity, I look at the percentage spent on advertising and administration. If those percentages are low, then I consider the charity better.
Sometimes I wonder if high advertising or administration might be a sign of good management instead of bad management.
Any thoughts?
EDIT: A charity with higher advertising might have a higher growth rate of donations each year. It seems like the growth rate of each charity needs to be a factor when comparing the percentage of advertising and administration? Maybe the amount of charitable goods delivered in this year should include a prediction of all future charitable goods? So a growing charity might have a higher percentage of advertising when divided by that years charitable goods, but it would have a lower percentage of advertising when divided by all future years' charitable goods?
