What percentage of donations to United Way is actually used for its intended purpose?
Under Canadian law, a charitable organization must spend at least 80% of the amounts for which it issued official donation receipts in the preceding year on its charitable activities. United Ways in Canada are independent and autonomous organizations. While the cost ratio varies from one United Way to another, on average 80% to 85% of dollars raised is invested in communities by way of allocations to agencies or though programs delivered directly by United Ways. That leaves an average of 15% to 20% of revenues to cover fundraising and administrative expenses. In Central Alberta, our fundraising and administration costs are estimated to be 21% based on raising $2 million in 2010. The money collected by a local United Way is distributed in its community based on advice from local volunteers – independent of what other United Ways are doing. For example, if you give to United Way/Centraide Ottawa, that money is allocated to organizations in the Ottawa area based on recommendations from lo
