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How Pervasive Are Abuses in Fundraising Among Nonprofits?
Authors:Howard P Tuckman  Cyril F Chang
Abstract:This article explores selected fundraising information for charitable nonprofits, asking whether widespread abuses might exist in this sector. After examining the pervasiveness of fundraising and its relation to mission, we show that a few nonprofits raise a majority of sector charitable revenues, and we present the ratio of funds raised to funds spent on fundraising by mission categories. We find that 72 percent of charitable nonprofits do not report direct fundraising expenditures, 5 percent of the active fundraising nonprofits obtain 90 percent of total funds raised, mission is related to a nonprofit's ability to raise funds, the median nonprofit spends about 9.6 percent of total raised funds for fundraising, and only one in five nonprofits hires a professional fundraiser. At least in terms of the measures used in this report, widespread abuses are not obvious.
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