Since a model is only as good as the data we chose to use the actual giving data for 2017 to investigate different methods for calculating the Cord Ministries administrative charges for our people and projects.
Cord Ministries International is a not-for-profit organization that handles the “back office” tasks for about 100 people and projects. These people and projects are located Czech Republic, Honduras, Israel, Africa, USA, and mostly in Thailand. One of our main jobs is to maximize the donation throughput to the people and projects we serve.
One of our main concerns is balancing the trade-offs between the many small donations and the few large donations that we process as we consider how to charge our administrative fee.
If we charge a fixed cost against each donation, say simply the total expenses of providing our services divided by the total number of donations, then a huge percentage of each of these small gifts gets eaten by the administrative charges and the large gifts have only a tiny percent going for the administrative expenses. Small gifts subsidize large gifts – that doesn’t seem right. Continue reading “Cord Ministries Donation Income Investigation Tool”