Trust money sliced up

The Westpac Rescue Helicopter makes around 500 flights a year. Photo / Doug Sherring

A prominent charity has outlined cost-cutting plans - as its first set of public accounts reveals it spent up to half of donations on fundraising.

Statements filed with the Charities Commission show the Auckland Regional Helicopter Trust received almost $5 million in donations in the year to March 31 - but spent some $2 million raising the cash.

The year before the trust raised $4.06 million, but spent more than half on fundraising.

Fundraising Institute chief executive James Austin questioned how much the trust spent on fundraising: "Others do it a lot cheaper. There could be a reasonable explanation but it does seem high."

Trust chief executive Bob Parkinson said it was wrong to focus solely on fundraising because the charity received money from other sources, including sponsorship.

The trust had to open its books after registering with the Charities Commission but has previously refused to release details of its accounts.

Chairman Murray Bolton said in 2006 the information was commercially sensitive.

Parkinson said he was using his background as a chartered accountant to help cut costs.

Measures included cutting fundraising staff and putting more focus on postal and events-based fundraising.

The trust had mailed copies of its glossy newsletter Chopper Chat to 150,000 homes in attempt to slash its telemarketing bill. That saw almost $900,000 paid in commissions in the year to March 31, 2008.

Jane Sheetz, director of event management and fundraising company P10, said a fundraising drive shouldn't cost more than 30 per cent of takings - and could be as low as 3 per cent.

But helicopter trust board member Michelle Boag said its fundraising system was "structured, formal and accountable" and involved a "very sophisticated telemarketing system".

"If we did not spend the $2 million to raise the $5 million we would not have a rescue helicopter service in Auckland."

The trust would continue its fundraising drive so it could buy a new helicopter next year - at a cost of up to $15 million.

The rescue helicopter serves the greater Auckland region. Based in Mechanics Bay, it carries out about 500 rescue missions a year.

It's not the only helicopter trust to spend a big percentage of its income on fundraising.

Wellington's Life Flight received $3.67 million in donations in the last financial year and spent almost $850,000 on marketing and fundraising.

The Nelson Marlborough Rescue Helicopter Trust received $97,165 in donations, but spent more than 70 per cent on marketing and fundraising.

The Waikato-based Philips Search and Rescue Trust spent a much lower percentage on fundraising - almost $720,000 of the $2.66 million it generated.

Charities Commission chief executive Trevor Garrett said a charity shouldn't spend more than half its income on fundraising.