Off and on for years now I have puzzled over how to reduce the drag on the systems of worthy charities and non-profits that fundraising imposes. As a small business owner I am on the receiving end of myriad outreach efforts on behalf of all manner of causes. What troubles me is the amount of resources that are expended - time, energy, creativity and, of course, money - to make sure that these organizations have...resources!
Many individuals and organizations that take their giving seriously look at what are sometimes called the "punitive ratios" comparing the percentage of a charity's or non-profit's operating budget goes to pay for the "program" vs. "management" vs. "fundraising." Potential donors judging that an organization's budget percentage committed to management or fundraising is too high often decide to pass on that organization in favor of another that appears to be using its funds more efficiently. Organizations that are for any reason having a tough time raising money are often forced to spend more to try to jump start giving, which in turn makes them less attractive targets for the generosity they seek.
I know I'm not alone in perceiving the irony that the choice to give to the organization is substantially responsible for the "quality" of these punitive ratios; organizations with more revenue have better ratios. If I choose to give to an organization, that organization then both is and appears healthier to others considering it as well. If I choose to give to an organization without having to be asked for my money, the effects of my gift are even more beneficial - a crucial principle behind Benefit Restaurants.
Benefit Restaurants will seek to improve the punitive ratios for the charities and non-profits to which they give by seeking to ensure there are little to no charity/non-profit administrative or fundraising expenses associated with their gifts. It is my intent that Benefit Restaurant™ funding not only helps out financially in the short term but also makes beneficiary organizations more attractive to others who are considering contributing their support.
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