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How We Cover Our Costs

For every £1 you donate:

80p (minimum) is spent directly on humanitarian aid by helping people through advice, support and campaigning

11p* is invested on fundraising and marketing to bring more donations

9p* is spent on management and to cover vital support costs

* approximate figures 

We don’t claim to have a 100% donation policy

Successful charities are able to fulfil more humanitarian work as well as reach out to donors and efficiently run their charity due to a small percentage of their costs going towards administrative fees. With your help, we would like to increase our campaigns and activities across the globe so that we can help the most vulnerable reach a position where they no longer need any form of support. Expanding our campaigns will require more investment in research, hiring professionals to implement our strategic and logistical vision, as well as the provision of crucial administrative support.

We aim to use your generous donations in the most effective way possible, whilst remaining transparent!

Cheap vs good

Assuming “high administrative costs = bad charity” and “low administrative costs = good charity” is misleading. It says nothing about the quality or suitability of aid, the impact it has on the lives of those we serve, or the sustainability of the goods or services delivered, nor does it highlight the extent to which the dignity of the beneficiaries has been protected, or the degree to which projects have been adequately monitored and evaluated.

The Financial Times urges people not to judge a charity by its admin costs alone, explaining:
“First, in a good charity, all the money, including admin costs, is ultimately spent on charitable activities. Second, composition of a charity’s cost base is no indicator of its effectiveness. Charities in England and Wales must split their costs into three categories in their accounts: charitable activities, costs of raising funds and governance costs. This unhelpfully implies that managing oversight and raising funds are somehow separate from charitable activities. They are not. All charitable activities rely on someone having raised funds for them, while good governance ensures those funds are spent wisely. The costs in all three categories should ultimately support charitable activities.”

Our promise to you

For every donation we receive, 20% of it will be invested in generating income and doubling your donations. We will invest in marketing and research in order to make sure we target the people who need our help the most. We will ensure there is effective communication with our donors and sponsors as well as promote our campaigns effectively. We will also be investing in fundraising, events, increasing awareness and raising further funds to ensure we help as many people as we possibly can around the globe.

We will also be proficiently investing into achieving efficient practices particularly in supporting our staff members both in the UK and abroad – who work incredibly hard throughout the year. We are committed to helping those who need it most by reaching the most vulnerable in society. This is essential but it can mean having to access hard-to-reach areas which can be costly and time-consuming as well as sometimes dangerous.

Enabling a charity to function effectively in order to perform its function of serving humanity is no different to helping an orphan in need. Helping to facilitate the very act of charity is a noble act and the impact is far-reaching and can last forever.

At Noor Orphans Fund, we promise to use your donations effectively to serve those around the world who need people like you. We are there simply to bridge that gap between you and them.

Frequently Asked Questions

How are your donations spent?

For every £1 we spend:

  • A minimum of 80p goes directly towards helping people in need.   
  • 11p* is invested into raising further funds to ensure we help as many people as we possibly can around the globe. 
  • 9p* is spent to cover management and support costs (also known as admin costs).  This includes money transfer fees (if applicable), office costs and staff salaries for those who work incredibly hard all year-round and to ensure our work is carried out efficiently. 

 *These two figures are approximate as the exact percentage depends on the campaign and/or the money transfer costs. 

Our management and fundraising costs vary depending sometimes on external factors outside our control. For instance, in some cases, part of the management and support costs is money transfer chargers from pounds to other currencies (usually American dollars).  In Iraq, the money transfer fees fluctuate according to the political, security or public health situation in the country.  For instance, during the COVID-19 pandemic, the money transfer fees reached 11% compared to 2 or 3% in other times. Therefore, we cannot exactly state the management and support costs, but we can guarantee at least 80% of the money donated goes towards humanitarian relief. 

Are people aware of Noor Orphans Fund admin costs?

Noor Orphans Fund believes in transparency and accountability. Information on admin costs are readily available on the Noor Orphans Fund website and in our Terms and Conditions which donors should read and accept before donating on our website.

As Noor Orphans Fund is part of Noor Trust charity, information on the charity expenses are included in our Annual Report, which is independently audited and lodged with the Charity Commission. 

As an organisation, we are making every effort to make people aware that Noor Orphans Fund has admin costs and why admin costs are a necessary expenditure for a high-performing and transparent charity.

How do I make sure my donation is effective in raising further funds?

Your donation helps us in turn to raise further funds – which means every donation you make is significantly increased in value. We believe this is money well spent because for every £1 we receive in donations around 11p goes towards raising further funds. Your donation is nearly doubled as we ensure funds are used effectively in marketing and fundraising to further our scope in helping humanity. Noor Orphans Fund is registered with the Fundraising Regulator, and strives for best practice in fundraising by adhering to the Code of Fundraising Practice.

How can I be sure my donations are spent properly?

For us to make sure we deliver the aid in the correct manner usually involves fees such as money transfer abroad and paying the salaries of staff who are responsible for administering these processes. Office costs, equipment costs and governance all need to be met to facilitate this process and make sure it fully complies with Charity Commission laws as well as legal obligations. Reaching the most vulnerable in society is essential but it can mean having to access hard-to-reach areas which can be costly and time-consuming as well as sometimes dangerous.

Why should charities charge to raise further funds?

Successful charities are able to fulfil more humanitarian work as well as reach out to donors and efficiently run their charity due to a small percentage of their costs going towards administrative fees. With your help, we would like to increase our campaigns and activities across the globe so that we can help the most vulnerable reach a position where they no longer need any form of support. Expanding our campaigns will require more investment in research, hiring professionals to implement our strategic and logistical vision, as well as the provision of crucial administrative support. The implementation of a highly secure system to keep both our donors and sponsored orphans secure, for example, costs money and is not something that should be taken lightly.

Will admin cost really improve the quality of your services?

Research shows that high-performing charities actually spend more on administration than weaker charities. Analysis by Giving Evidence provides a case study on false economies: “Imagine a water charity which operates in several less developed countries to improve irrigation. If it’s run well, it will have a system for recording what works and what doesn’t in particular circumstances, and for sharing that learning between its various country offices. Now, should the costs of that system count as ‘administration’? On the one hand, the system isn’t directly helping people: it probably involves databases and conference calls, rather than pipes and water. As a result, it may well be classified as ‘administration’ in a charity’s accounts. However, the system will reduce the charity’s costs and increase its effectiveness, and therefore certainly isn’t waste. Aha – in this case, money spent on administration increases performance”

Why can’t Noor Orphans Fund staff be voluntary?

While we have many volunteers who regularly work with us, we also hire staff. Our office in London employs hard-working staff who have a passion for charity work but also need to support their families. Our staff are incredibly hard-working and often work long hours to ensure they do what’s needed to support our sponsored orphans and any of the people in the campaigns we are involved with.
In addition to this, we employ several staff in our offices throughout Iraq. Several are widows with orphaned children who are now receiving employment with a modest wage which fosters their independence and self-sufficiency.

What about charities that claim to not have an admin cost?

Some organisations claim to have zero overheads. However, all organisations need to spend money on running costs. A charity needs a head office to control the organisation and to ensure compliance with laws and regulations. Even volunteers cost money: they need to be trained, coordinated and supported. Every charity needs to find some source for their running costs – if they don’t take it out of donations that they receive from the public, then they have to take it from donations received from other donors, running charity shops or from gift aid.
Claiming that 100% of every pound raised by a charity is used exclusively for charitable purposes is, according to The Guardian, “there are still some organisations that claim that 100% of every pound raised by their charity is used exclusively for charitable purposes. But this is only an illusion, made possible because other costs incurred are covered by other income sources – such as grants … the myth that charities can operate with zero overheads is utterly misleading and creates the illusion in the public’s mind – and it damages the rest of the charity sector.”

Together, we’re saving and transforming the lives of some of the world’s most vulnerable people.

Get involved and be the change

Want to make a difference to the lives of others, help the less fortunate, feel valued, spend quality time away from your busy lifestyle and gain confidence and self-esteem?
Why not achieve all of the above and much more by volunteering at Noor Orphans Fund.

DONATE

Charity is a good way to prove that love still exists. It gives people hope that humanity is still present.

SPONSOR

Want to give a child a better future? sponsoring a child with Noor Orphans Fund today can change a child’s life for good.

FUNDRAISE

Why not take a look at some of our fundraising ideas? Whatever you’re planning, we’ll make sure your big ideas become a reality.