U.K. Regulators Eye Greater Disclosure on Nonprofit Spending

Britain’s Charity Commission wants to work with nonprofit groups to establish an index to monitor how much organizations spend on their missions and set guidelines on what constitutes reasonable administrative costs, Third Sector Online writes.

Speaking at a public meeting in Wales on Thursday, Suzi Leather, the commission’s chairman, said a “good enough index” would help address the public’s chief concern about charities– the proportion of their income they spend directly on causes. She said the agency would work with nonprofits to determine a reasonable rate of administrative spending.

“I am under no illusions about the complexity of this, and it would not be a perfect index,” Ms. Leather said. “But this issue is clearly front-of-mind for the public, so it should be front-of-mind for the sector, too.”