Last week’s Herald on Sunday editorial was a strong reminder that

“… perception is every bit as important as reality.”

It also demonstrated how powerful other people’s comments can be.

The ‘feel-good’ factor generated by TV3s Telethon as a fundraiser for charity KidsCan was diminished somewhat as bloggers and other commentators started digging into how much of the funds charities raise actually reaches the intended beneficiaries. A lot less than the donor probably thinks.

The revelation in July that less than 3 cents in the dollar donated to the Epilepsy Foundation allegedly went towards helping people with epilepsy at branch level created widespread debate about the ethics, and transparency, of fundraising in the not-for-profit sector.

Little wonder, then, that KidsCan found its fundraising activities, and financial accounts, in the spotlight following the Telethon just weeks later. In defending claims just 18-25 cents in the dollar are spent by the charity directly on its beneficiaries KidsCan representatives found themselves having to answer questions they’d probably rather have avoided.

Few would doubt there are costs associated with raising funds. Even when dealing directly with a charity, ie. making a direct donation, rather than donating via a third party like a specialist fundraising company, the percentage donation spent on ‘operating costs’, including salaries, marketing and promotion, can be significant.

The question is, are charities transparent in the claims they make when appealing to donors, and the financial reporting of their activities?

The vast majority are. And for many, even receiving just cents in the dollar by way of a third-party organisation working on commission or fees, is money they badly need and may be unable to raise any other way.

Unfortunately, perception is reality, and I’d hazard a guess many of those who supported the Telethon, and other charitable requests, will think twice before doing so again given the ‘cents in the dollar’ concerns raised in recent weeks.