When it comes to our books, we’re an open book
At the Charlie Teo Foundation we’re not only changing the game when it comes to research, but also when it comes to financial transparency. Yes, we’re an open book.
Why are we stating this?
Because here in Australia there are no mandatory standards or rules defining how charities report on their costs. This means charities classify costs in different ways,
and are rarely transparent to donors about how this is done. This makes it almost impossible to compare one charity to another.
Many charities classify certain costs as program expenses not as admin costs if they feel they are directly attributable to the activities of the charity. This may include costs like a portion of employee salaries and insurance premiums.
We’ve decided to do things differently
At the Charlie Teo Foundation what you see is what you get. Our numbers may not look as good as other charities but that’s primarily because we don’t do any cost allocations that could make our numbers look more favourable.
Our commitment to you is to report our financials differently. We will:
- Publish easy-to-understand graphs on our website.
- Update these after the end of each financial quarter.
- Report on how we’re spending our total income. We’ll also report on our charity reserves. These are funds saved before being spent in pursuit of our purpose - funding the best brains to beat brain cancer.
- Be clear. So just know that whenever we talk about our “costs”, we are talking about both our fundraising costs and admin costs.
- Publish our audited reports for each financial year.
Let’s breakdown our spending even further
Brain Cancer Research - We define this very strictly and simply as money that’s directly distributed to our research programs and grants for research. These are our program expenses. We distribute this money in accordance with our research strategy. Spending wisely on research takes time and care. We take our funding decisions and accountability to donors very seriously.
Fundraising Costs - Raising money can cost money. That’s just the reality. These are the costs of conducting our fundraising activities. And while we always try to keep them down, events, activities and gala dinners generally have associated costs.
Administrative Costs - Just like any other organisation, running a charity has overheads. These costs include employee salaries, office equipment and various bills. Our volunteerism model helps keep these costs low.