NB 2: This report is available as a pdf download by clicking the link here:
- The charity deals with a range of work that appeals to us.
- The charity has no ulterior motive – eg religious teachings or political leanings.
- The charity appears to do some good and does not just hoard money or spend it frivolously.
- The charity pays its staff a reasonable and not excessive level of remuneration. For us the level is £75,000 as an absolute maximum. We do not believe a charity, which by definition is dependent on donations and support from the general public, should be paying staff a higher salary than this level and we would only ever expect to see 1 or 2 members of staff on salaries of more than £60,000 in very large charities.
- Charities that support small tangible projects in Africa.
- Charities that deal with poverty and the effects of poverty in the UK.
- Specific support for the education of children in Africa.
- Support for stammering and in particular children affected by speech impediments.
- Support for people who have Parkinsons.
- Support for people who have had a stroke.
- Charities working with ex-offenders.
- Charities with links to the legal profession (we work in the legal sector).
- Charities dealing with victims (and perpetrators of) domestic violence.
- Charities dealing with youth work in areas particularly affected by poverty.
- Animal conservation – in particular third world conservation.
- Charities saving the rainforest by purchasing it.
- Local sports clubs and organisations.
Although one of the two trustees of the Ten-Percent Foundation is a vicar in the Church of England, we do not donate to charities that have a religious purpose to them. In fact we specifically shy away from them. We donate to charities linked to churches and religious organisations, mainly because they are very often responsible for running really good and worthy causes.
Charities that do not just hoard money or spend frivolously
Charities that pay staff reasonable and not excessive remuneration
- We feel that the Chief Executive is earning a salary considerably higher than just about every employed solicitor in a similar sized solicitors practice in England and Wales with c.5-10 employees.
- The vast majority of this charity’s income appears to be coming from guaranteed or pretty safe sources – investment income, secured loans and residual balances from client accounts. £154k of donations is not a large amount.
- In relation to the salary, this is a charity servicing the legal profession, and I would guess that a large chunk of the beneficiaries are from outside the London city firm bubble and hence receive average salaries.
- Most high street solicitors with 10+ years experience earn about £40,000-£50,000 throughout their career. At partner level this can admittedly increase, but the partners are in business and take a risk that is rewarded by the commercial return. Charities do not have the same risk, particularly those with investments and/or external funding.
- The charity appears to be effectively outsourcing work to other parties, eg LawCare. Quite why a charity of this size and with such resources needs to expend such a large proportion of it on one member of staff when most of the work seems to be external is an interesting question. We calculate the salary of the chief executive to be 4.5% of the total income of the charity in 2014 and 57% of donations received during the year.
- Chief Constable of North Wales: £135,774 (responsible for 2,600 police officers and staff).
- Hospital Consultant: £75,000 - £101,000 per annum, plus private work/overtime etc..
- Chief Fire Officer of Staffordshire: £149,000.
- Member of Parliament (to 2015): £67,060.
- Average salary in the UK in 2014: £26,600.
We have included details above on exactly who the members of the panel were because so many originate from the City of London bubble – where salaries in six figures are the norm.
- 91% of charities have no paid staff at all. However out of 161,000 charities and a £39 billion income, 533 charities received £19 billion of this.
- Pay for senior executives in some charities seems to be disappearing off the top of the scale of a reasonable level of remuneration bearing in mind that a charity relies on the goodwill of someone else, usually unsuspecting members of the public.
- The charity sector apparently provides employment for 800,000 people and the report of the panel above highlights this – indicating that this is a healthy contribution to society. Perhaps this is true – we should support charities and pay their staff because it keeps them in employment - a charitable aim in itself. Miners could probably have used the same argument in the 1980s…
Jonathan Fagan is Managing Director of Ten-Percent Legal Recruitment and a non-practising Solicitor. Ten-Percent Legal Recruitment provides online Legal Recruitment for Solicitors, Legal Executives, Fee Earners, Support Staff, Managers and Paralegals.