The Portfolio Approach
for Managing Donations
In order to maximize the impact of donations, SHARED has created
portfolios of projects to receive funding and other support from
the organization. Through this approach, we strive to decrease our
administrative costs while making more money available to the people
we serve, giving your donation a bigger impact.
Here's how it works.
An Innovative Approach to Delivering our Services:
Non-profit organizations struggle to keep down the administrative
costs to permit the maximum amount of donated dollars to be spent
on programs rather than overhead. According to the National Center
for Charitable Statistics, "the percentage of total expenses
going to program costs is the most common measure of nonprofit organizational
efficiency. Focus group research has found that donors expect worthy
organizations to have low fundraising and administrative costs."
It is generally accepted that combined fundraising and administrative
costs constitute no more than 25 percent of the organizations' total
In order to reduce our overhead costs,
SHARED asks its donors to support portfolios of programs
rather than individual projects. For example, we have assembled
a number of projects in different portfolios. In our "Determine
the Future" portfolio, we have identified partner organizations
in southern Africa that are doing excellent work for orphans and
abandoned children but could do much more to feed and provide access
to medical care if they had additional financial support.
Working closely with overseas organizations, SHARED raises funds
for the portfolios of projects and then transfers funds to
individual projects once financial goals are met. This flexibility
allows us to react to the changing needs of these overseas partner
organizations while reducing our administrative costs. More of the
money we raise goes to creating change in the lives of the people
we want to help.
An Opportunity for You to Improve Access to Medicines:
If you are an individual looking to invest your donation dollars
wisely, our innovative approach to portfolio funding presents unique
opportunities to make a difference in the lives of some of the world's
poorest people. Working together, we can get more medicines to those
people in need.
1. Website for National Center for
Charitable Statistics, http://nccsdataweb.urban.org/FAQ/index.php?category=40,