For Donors

There are no legal provisions in Norway that directly regulate how a fundraiser should be conducted.
The Fundraising Oversight Authority ensures that fundraising activities are conducted responsibly and that the money goes toward the stated purpose.
Use your head and your heart when you give!

Approved List

This is the list of organizations approved by the Fundraising Oversight Authority. When an organization is approved, it commits to following specific accounting rules and ethical guidelines for fundraising, and to undergoing external audits.

See which organizations are safe to donate to.

The fundraising oversight body requires that all approved organizations maintain their accounts in accordance with the standard “Generally Accepted Accounting Principles for Nonprofit Organizations.” This form of accounting makes it easier to see where the money comes from and where it goes than in a standard income statement.

Collection Rate

Approved organizations are required to maintain an average collection rate of 65% over a five-year period. Collections must therefore be recorded on a gross basis in the financial statements. At the same time, all fundraising costs must be recorded on a separate line item in the financial statements. The fundraising rate is calculated by dividing these costs by gross fundraising revenue.

It is important to note that organizations with a high fundraising rate are not always automatically “better” than those with a lower rate—as long as it is above 65%. Some organizations, for example, receive significant grants, which means they get off a little “cheaper” than those without them. There are also organizations that have based their operations on regular business activities, such as the sale of services, goods, property rentals, or investments in the financial market. Those that are more dependent on fundraising to achieve their mission will often, naturally enough, have higher fundraising costs. The fundraising percentage can also vary from year to year. For example, an organization may invest significant sums in recruiting regular donors over a period of time. This will result in a lower fundraising rate that year, but the rate will improve in subsequent years, as the costs have already been incurred, while the regular donors provide stable donation income without any further significant costs.

As a donor, the most important thing is to give to the organization whose mission is closest to your heart.

Administration

Administration is a recurring theme when it comes to charitable organizations.

A common misconception is that all salaries paid out are considered administrative expenses. This is not the case. In the standard “NRS(f) Generally Accepted Accounting Principles for Nonprofit Organizations,” administration is defined as “the activities carried out to operate the organization, including planning, managing, and evaluating the organization’s activities.” Costs that cannot be attributed to specific activities, and that cannot be allocated to activities in a sufficiently reliable manner, are classified as administrative expenses.”

In other words, this includes planning, evaluation, and projects, as well as accounting, auditing, and other control measures. These are absolutely essential if an organization is to be able to claim any kind of impact.

An employee who works 100% on administrative activities, such as accounting, will have their entire salary recorded as an administrative expense. Another example: if the executive director of an organization spends 50% of their time on program activities, 30% on administration, and 20% on fundraising, their salary will be allocated proportionally across the various line items in the financial statements: program expenses, administrative expenses, and fundraising expenses.

Thus, keeping administrative costs as low as possible is not a goal in and of itself. Administration is an important element that helps the organization achieve its purpose. At the same time, administrative expenses can, of course, become too high. However, to assess this, one must conduct both a qualitative and quantitative analysis of the organization. Complex activities related to the organization’s mission often require more oversight, which in turn leads to higher administrative expenses. If the organization operates in high-risk areas, this will also typically require more administration to ensure that funds are directed toward the organization’s mission and do not disappear due to corruption and inefficiency.