Admin costs, service effectiveness and donations

Over the years there has been a bit of airplay dedicated to suggesting that the ratio of administrative costs is a measure of a service’s effectiveness.  ACNC commissioner Susan Pascoe views this as flawed approach  “due to the inconsistency in accounting practices used by Not for Profit organisations.”  In response  the ACNC has released an FAQ on charities and administration costs, that looks at commonly raised issues and outlines the regulator’s response.