German donors overestimate charity spend on advertising & admin

Donors in Germany vastly overestimate how much charities spend on advertising and administration, according to EFA member Deutscher Fundraising Verband (DFRV).

This is according to figures from DFRV’s 2024 Spendenmonitor (Donation Monitor), which will be released in full at the end of the year.

Its survey of 5,000 German adults found charity donors estimate that, on average, around €61 of a theoretical €100 donation is used for charitable activities once administrative and advertising costs are deducted – with around one in 10 donors estimating that the figure is less than €25. Among non-donors, the estimate drops to €47 of the €100 gift.

Both of these estimated figures are lower than what these groups feel would be appropriate – donors expect €75 to make it to the frontline, and non-donors would feel comfortable with €79.

In fact, according to DZI, for the top 30 German nonprofits (by fundraising income), the average for advertising and administrative costs as a share of total expenses was 14.26% in 2023.

A press release from the DFRV says:

“In reality, most large fundraising organizations significantly exceed this figure because they work much more efficiently and effectively than most people believe.”

“We believe that the debate about administrative services is fundamentally misguided and weakens civil society, because it is not about ‘administration’ in the traditional sense, but about urgently needed investments in sustainability and performance – for example in qualified personnel, transparency measures and long-term impact.”

Professor Tom Neukirchen, a member of the DFRV advisory board, adds that the vast majority of people do not donate without some sort of marketing or advertising prompt, even if they claim otherwise. He also says that without advertising for donations, German civil society would shrink to “almost certainly less than 25% [of its current size]”.

Four million questions

This year’s Spendenmonitor will be the 30th produced by DFRV. The organisation says that 130,000 people have been interviewed in these three decades, answering a total of four million questions.

DFRV says that the figure for how many Germans give to charity has remained at around 50% throughout this time, although this has increased in response to major events such as natural disasters, and Russia’s invasion of Ukraine.

Neukirchen says that the research has had significant impact over the years, commenting:

“This kind of market research can help to use marketing spending more efficiently and reduce costs.”

In August, DFRV released figures from the 2024 Spendenmonitor showing that German adults with a religious belief are more likely to give money to charity or volunteer than those with no faith.

Picture by loufre on Pixabay