AIDS Network Used 58% Of Donations From ACT Ride On Operating Costs

In the current economic climate every non-profit is struggling to do two things.  The first is to raise money, and the second is make every dollar stretch as far as possible in an effort to affect change as much as possible.  The economy today just mandates that be the case.  Likewise in these hard times individual donors are seeking to find places to put limited dollars that will make as much of an impact as possible.  Doing more with less on each side of the giving and taking aspect for non-profits is the only way to do business.  That is what one would think. 

There is however another way to do business with the money that is obtained from the public for the work of a non-profit.  Lets call that method, ‘the AIDS Network way’.   It is not, I hasten to add, the way a non-profit operates if they wish to be credible, or capture repeat donors that have every expectation the money they give will be properly spent. 

Each year the AIDS Network has a bike ride in the summer that is designed to raise money for the Network, and draw attention to the work that needs to be done to fight HIV/AIDS.  When hearing of these goals most would say in a blink of an eye, “sure I will donate to the cause.”     

Hold on Nellie!!   Not so fast.  Before you reach for the wallet lets check to see how the money was spent by the AIDS Network from the donations they already received for past rides.  

Of $386,291 in total special event donations, $295,525 (or 77%) was from Ride donations. Here’s the shocking truth of how AIDS Network spent these donations in 2008:    

 Fundraising Costs $204,032-53% 

 Management Costs $20,887-5% 

 Volunteer costs $36,462 – 9%  

Education/Outreach $48,661 – 12% 

 Client Services $76,249 – 20%  

This audit proves that in 2008 AIDS Network lied to all of the ACT Ride participants when it said that 90% of their donations were used to support AIDS Network prevention and client services. The audit proves that only 32% of Rider donations were used for these services. What is shocking to everyone who has ever invested the time and enormous energy to complete the ACT Ride and raise the funds – is that 58% of their hard earned donations are used by AIDS Network to cover their fundraising and management costs.   

There is a desire within most people to care about others, and to share in the cost of making sure those in need are cared for.  That is the spirit of walking a shared road that makes us one with another in society.  So it troubles me greatly when I read of the less than careful handling of funds by an agency that is supposed to be client focused.  The operating costs for ACT Rides of the AIDS Network undermines my message to others that giving to non-profits allows for a greater good.  It is hard to convince people to give when the curtain has been raised, the spotlight shines, and the audience is allowed to see the stage laid bare. 

Once again there is a need for the AIDS Network to send someone to the center of the stage, pull up a chair and have a frank discussion with the people in the audience.  The people in the 13 counties that the AIDS Network purports to work for need to know why there is such a huge operating budget for a fundraising effort.  They also need to know why the AIDS Network claims that 90% of the money raised supported client services and prevention work when by their own numbers 58% was used on fundraising and management services. 

Sadly, I think we will all be waiting for a long time to hear from the AIDS Network.  I say this as the only show they know how to put on is to circle the wagons, hunker down, and wait for the storm to pass. 

The problem for the AIDS Network is that the audience is getting bigger and more restless as we wait for some honest answers.

I think someone needs to tell Executive Director of the Madison AIDS Network, Karen Dotson that it is SHOWTIME!