the high cost of being charitable Almost half of donations to some popular charities are spent on fund-raising, prompting calls for more transparency as the Coalition prepares to abolish the body set up to regulate not-for-profit organisations. A Fairfax Media analysis of the financial performance of 15 well-known charities reveals some are spending 41¢ in every donated dollar on fund-raising. Others are spending less than 5¢. But there are few guidelines in a sector facing significant uncertainty as the Coalition dismantles the Labor government's Australian Charities and Not-for-profits Commission - intended to be a charities watchdog - in favour of a "centre for excellence." The Make-A-Wish Foundation of Australia raised more than $12.8 million in donations last year but spent $5.2 million, or 41¢ in the donated dollar, on fund-raising, marketing and communications. After other expenses, only 54¢ in the donated dollar went to granting the wishes of sick children. Chief executive Gerard Menses said its financial position had improved and it had granted 501 wishes this year. The National Heart Foundation collected more than $51 million from fund-raising last year but spent more than $20 million on fund-raising, $8 million more than it put towards research. The bulk of its revenue went to health programs. By contrast global charity World Vision spent 11¢ in the dollar on fund-raising, the McGrath Foundation 9¢ and the humanitarian arm of the Red Cross 4¢. The big difference is partly that no clear accounting guideline exist about which costs are classified as fund-raising expenses and administration. Make-A-Wish includes marketing in the cost of fund-raising whereas the National Breast Cancer Foundation includes marketing, speakers and communications as a separate category, not included in fund-raising costs. It spent an extra $1.05 million on these in the year to last June. The chief executive of Philanthropy Australia, Louise Walsh, said not all charities provided transparent financial data, which put the onus on donors to do their research. "A lot of annual reviews and annual reports are not as strong as they should be and not all of them are user friendly," she said. We would like to see a lot more information on the public record. A new Charities Act comes into effect on January 1. It provides a new definition of a charity, which is not required to pay income tax. The government failed this month to delay its introduction. Social Services Minister Kevin Andrews will begin consultations over the repeal of the Australian Charities and Not-for-profits Commission in February, a move that has been resisted by the charity sector and the Greens. Linda Lavarch, the chairwoman of the government's Not for Profit Sector Reform Council, said the abolition of the commission and the potential repeal of the Charities Act would result in less transparency and accountability. Detailed information about a charity's performance can sometimes be obtained only by paying for reports filed with the Australian Securities and Investments Commission.