Revealed: where breast cancer cash goes

The New Zealand Breast Cancer Foundation spent almost half the money it raised last year on fundraising, administration costs and staff wages, figures released publicly for the first time reveal.

The Sunday Star-Times asked the NZBCF a year ago for its financial statements amid concerns about how the money was being spent and the "corporatisation" of the breast cancer industry. Critics accused companies of selling "pink" products to boost their own profits – dubbed "pink-washing".

The foundation refused to release the figures, but has now had to provide them to the Charities Commission. The NZBCF, which is in the middle of its awareness month, is the dominant breast cancer charity and has exclusive rights to the use of the pink ribbon.

In the past it has focused almost exclusively on awareness and education campaigns and pushing the importance of early detection through mammograms. Critics say this focus has been at the expense of prevention messages and support for women who already have the disease.

But the foundation's financial statements, published on the Charities Commission website, show that the organisation has switched tack to some degree in the past year, entering into a new relationship with the Sweet Louise charity, which directly supports women with terminal breast cancer. The NZBCF has committed $577,500 to Sweet Louise over three years, as well as $120,000 for the Pink Pilates rehabilitation programme.

The accounts also show:

Revenue was $3.3 million, of which administration and fundraising expenses, salaries and merchandise ate up more than $1.4m, or 43%.

The foundation increased its expenditure in these areas by $628,956 compared to the previous year, but increased its overall revenue by only $628,149.

The amount raised through the sale of "pink products" offered by corporates was only a fraction of the total raised, at $246,590.

The foundation raised $812,204 from its pink ribbon street appeal, up from $738,831 the previous year, and $1.7m from donations and sponsorships.

After costs, the foundation spent most of its money ($1.2m) on awareness and education campaigns, plus $337,000 on research and other grants and $218,000 on patient registers.

Industry body The Fundraising Institute says the cost of raising money varies greatly, but questions should be asked if more than 50% of revenue is spent on administration.

It was revealed after this year's Telethon that recipient charity KidsCan had returned less than 30% of the money it raised on programmes for disadvantaged children.

Other charities keep their costs much lower. Starship Foundation chief executive Andrew Young said Starship, which raised about $8m last year, had administration costs of 15%, and had averaged 17% over the past 10 years.

Heather Shotter, executive director of the NZBCF, said the foundation had gone through major change over the past year, moving offices, reviewing its programmes, developing its website and database, employing new staff and embarking on a change in strategy. This meant costs had risen from about 39% of revenue to 43%. "I think we are always looking to decrease that, but given the changes we've made in the last year... to only increase costs by 4%, I was pretty pleased."

Shotter said a big jump in salaries and wages from $476,254 to $614,542 was for staff who had been employed to implement the foundation's awareness and education programmes – its core business.

Shotter said the review of the foundation's work had identified "gaps" in the services it provided.

"What we really saw was a gap in community outreach programmes – what were we doing to support women who already have the disease? We didn't want to duplicate services, so we looked to organisations that are fulfilling that need that are really struggling with funds and said `how can we support you?"'

Asked if the strategy change was a result of criticism, Shotter said: "It's not really taking the criticism on board, it's about a natural progression in our programmes."

Sue McLeod of Kerikeri, a breast cancer survivor and researcher who runs the website www.breast.co.nz, said spending so much money on awareness campaigns was a waste and the foundation's message had not changed since it gained the "upper hand" in breast cancer fundraising in the mid-1990s.

"Women are aware of breast cancer, we are aware that women die... which is what their media suggests. What can we do to stop cancer is now the common concern."

- © Fairfax NZ News