Care needs to be taken when examining how much charities spend on administration. For example, a charity might spend only a tiny percentage of its income on admin but then decide to open 50 charity shops across the country. Due to the cost of rents, salaries for full-time managers and travel expenses paid to volunteers, their admin costs might rise from perhaps 1% to around 40% but, as long as they actually end up with more money for the cause that they're seeking to support, does the percentage figure really matter?
Research shows that charities which have the best record of raising money (in terms of the actual amounts raised) are often those with the highest administration costs (as percentages of their income) but, again, as long as the actual
amounts raised are high, should those percentages be seen negatively?
http://www.theguardian.com/voluntary-sector-network/2013/may/02/good-charities-admin-costs-research