073 Charity finances

A Man Making A Donation At A Mosque

Question

The pie charts show the amount of money that a children's charity located in the USA spent and received in one year, 2016. Summarise the information by selecting and reporting the main features and make comparisons where relevant.

Revenue Sources

Total: $53,561,580Total: $53,561,580Total: $53,561,580Total: $53,561,580Total: $53,561,580Total: $53,561,580Donated food: 85.6%Other income: 1.4%Community contributions: 8.4%Investment income: 1.2%Program revenue: 2.2%Government grants: 1.2%

Expenditure

Total: $53,224,896Total: $53,224,896Total: $53,224,896Programme services: 95.8%Management and general: 1.6%Fundraising: 2.6%

Model Answer

The charts illustrate the income and expenditure of an American charitable organisation in 2016. It can clearly be seen that the operation of the charity centres on the collection of food donations, which are then used to provide services.

The charity spent the vast majority of its revenue on providing services; charitable work represented 95.8% of all outgoings. Running costs accounted for only a small proportion of expenditure, as only 1.5% of income was spent on management and general costs. The only other expense was that of fundraising, which represented 2.6% of the total.

In terms of revenue, this was overwhelmingly in the form of donated food, accounting for 86.6% of the total. The only other notable sources of income were community contributions and programme revenue, which stood at 10.4% and 2.2% respectively. Other sources, including investment income and government grants, contributed a mere 1% to the total. The charity generated a small surplus, raising $53,561,580 whilst spending $53,224,896.

(169 words)

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