When you write a check to a charity, you expect your money will be used for a good cause.
But how much of that cash is actually being used for the non-profit's mission?
News 12 examined a number of nonprofit organizations across Mankato, and how much they spend in salary.
"The reality is it takes people to deliver on programming," said Kris Kewitsch of the Charities Review Council.
In many cases, manpower eats up the majority of revenue for organizations, including nonprofits.
"Sometimes, particularly for small organizations, the percent of dollars that are spent on salaries as opposed to the entire budget can reach to the 60-75 percent range," said Sondra Reis, Minnesota Council of Nonprofits associate director.
Here's the breakdown for the following nonprofits in Mankato:
According to a 2010 tax form, the Greater Mankato Area United Way took in $2,194,969 in revenue, and spent $265,095 (12 percent of revenue) in salaries/benefits/compensation.
And in 2011, the Red Cross took in $439,680 in revenue, and spent $104,803 (24 percent of revenue) in salaries.
In 2011, the Salvation Army compiled $1,454,706 in revenue, and spent $589,615 (40.5 percent of revenue) in salaries.
According to a 2010 tax form, the YWCA took in $220,121 in revenue, and spent $147,361 (about 67 percent of revenue) in salaries/benefits/compensation.
According to a 2010 tax form, Vine Faith In Action compiled $1,168,712 in revenue, and spent $695,813 (about 60 percent of revenue) on salaries/benefits/compensation.
Reis says employees of charities are typically paid less compared to those of for-profit organizations.
"Nonprofit salaries compared to those two sectors--nonprofit employees are paid less overall, depending on the numbers you look at, somewhere between 8-12 percent," Reis said.
When it comes to compensating workers, Kewitsch says nonprofits can spend what they choose.
"There's no law or mandate around what is an appropriate breakdown of administrative expense," Kewitsch said.
For organizations who don't have as strong of a volunteer base as other nonprofits, it takes staffing to execute their mission statement.
"We couldn't do the programs that we do without personnel," said Anne Ganey, executive directory of the YWCA Mankato. "The YWCA would not really be here without personnel."
The amount spent on salary also relates to the number of volunteers an organization is able to utilize.
Laura Bowman, president of the Greater Mankato Area United Way says that's a big reason why employee compensation is kept on the low side for her organization.
"For us the majority of our staff are volunteers," Bowman said. "We have over 300 volunteers and we have 5 full-time staff, and one part-time. Ninety percent of the dollars that are donated are what we're able to put into program services, and we're really proud of that."
Officials say nonprofits are periodically audited by the IRS and the Charities Review Council.
To see if your favorite organization is listed with the Charities Review Council and to view audit reports, visit: http://www.smartgivers.org/meets_standards.html
