A recent article in The Washington Post revealed how telemarketers take huge cuts of the money they raise on behalf of nonprofit organizations. In one of the most egregious examples, the nonprofit not only didn’t receive a single dime, they even owed additional fees to the telemarketer.
Yellow Ribbon Fund donors have never had to worry about telemarketers and never will. Since our founding in 2005, the board of directors has had this policy: No telemarketing company will be employed to raise funds for YRF. Our fundraising is done by our staff (none of whom are full-time fundraisers), board members, and volunteers who generously step up to support our mission of assisting injured service members and their families.
Still, it costs money to run even the most efficient nonprofit organization. The standard in the nonprofit world is to spend at least two-thirds of your funds on programs and services. The remainder goes to overhead, administration, and fundraising. Last fiscal year, the Yellow Ribbon Fund spent 79% of its money on programs and services for the injured and their families. Taking the long view, our spending ratios since our founding are even better.
Donating to a worthy charity is a serious decision. How that charity spends its money is even more serious. We are proud that the Yellow Ribbon Fund measures up as a worthy beneficiary of so many generous donors.
– Mark E. Robbins, CAE
YRF Executive Director