Let me speak here to Admin Charges within Life Impact. The reality is that anytime an organization is created, there are organizational costs that must be “borne” by someone. When LI started, Sheri and I through our donors, carried the “costs of doing business.” Taxes, fees, software, hardware, business supplies, insurance, phone calls, etc. had to be paid by someone — and that someone was us.
As the team grew, the organizational costs also grew . . . unfortunately. So our next step was to take 5% of our overall income to cover those — adding donor receipting and accounting costs now centralized. However, that percentage was not enough as we kept growing, so the fee raised to 7%. Again after a period of time, that was not adequate income to cover the basic costs of doing LI business, so in July 2013 we raised the admin. charge to 10%. That level is presently adequate to cover the costs of doing the business of the organization, and I’m hoping to keep it there.
I groan when I read about the king taking 10% from each of the subjects. and at the same time realize it costs a certain amount to run an organization, no matter what the Polity is.
So, Dear Staff, it looks like we’re stuck assessing 10% in order to run Life Impact services for you — but while I’m at the helm, I still don’t want our overall Polity to function like the king’s!
And if I looked back on our early beginnings when Life Impact was only Sheri and I, we were probably using close to 10% of our income anyway to carry the costs of our 2-person operation. Apples to apples, one has to account not only for the monetary costs for services provided, but also for the time invested by someone to carry out the organizational functions. Can we actually do that for less than 10%?
And I also find it interesting, that God wants 10% (the tithe) to go to Him for the operation of His Kingdom.
So it seems that 10% is perhaps a norm we all need to live with, no matter what type of organizational system we live within. Any thoughts from you?