Fiscal education; why charities need to speak up when their staff are good value for money

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Fiscal education; why charities need to speak up when their staff are good value for money

The most recent data from our Charity Awareness Monitor (CAM) has yielded some interesting results on public perceptions of charity staff pay. While the majority think that Chief Executives are paid (80%) and volunteer tin collectors are not (69%), there's a fair bit of uncertainty about whether or not salaries are drawn in other roles, such as trustees and on-street fundraisers.

At the same time, our data on whether people think charity staff actually should be paid also sheds light on some important perceptions. For example, more than half of the public responding to our survey think that charity shop managers (59%) and charity administrative and support staff (56%) should be paid. By contrast, while 4 in 5 people think that chief executives are paid, only 2 in 5 think that they ought to be. Even fewer people (14%) believe that charity trustees should be paid, reflecting the uncertainty about the role of trustees and the value they bring to charities that we’ve discussed in a previous blog.
 
In keeping with our CAM data, we hear public concerns about staff pay (especially at the executive level) on a regular basis in focus groups with the general public. We famously once heard a focus group respondent tell us, with a straight face, that even if a charity had an annual income of £1 billion, the chief executive shouldn’t be paid more than £50K, regardless of his or her experience, commitment, connections or capability of growing and developing the organisation.
 
All of this goes to say that, while the public are in some cases aware of charity staff pay, there is scepticism about how much value for money those paid staff provide, especially at the executive level.
 
We know from our Charity Awareness Monitor that concern about staff pay levels is a major factor in public trust in charities. We also know that a charity being run by volunteers makes a significant proportion of the public more confident that the organisation will use donations wisely. 
 
This reinforces what we’ve said in numerous mediums before; charities must remember to communicate the value of paid staff wherever possible. They also need to take every opportunity to show that economies are being made and investment is paying off, particularly in the cases of staff and overhead costs.
 
Are your staff not allowed to travel first class? Shout about it. Has a charity shop manager used previous retail experience to increase revenue? Put it in the newsletter. Are your trustees only paid in order to reimburse necessary expenses? Tell your supporters. Has your new chief executive used their experience to implement changes that make the organisation more efficient and effective, or their industry connections to raise the charity’s profile? Don’t keep it quiet. 
 
The public are already familiar with discussions of the value that volunteers bring to charities. Given the public's views of who should and shouldn’t be paid, charities also need to be clear with donors about the benefits brought by paid staff at all levels.

Jennifer Shea

 

Are we right on the money here? Or do you want to have your two penneth? Leave us a comment below.

Submitted by Val Brown (not verified) on 11 Aug 2013

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If a person is truly interested in a certain charity, then surely they would want to give their services free, not profit by it.

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