Charitable Sector Profile: Detroit

Detroit's Philanthropic Community Ranks Last in the Nation

Charity Navigator's sixth annual study examined the differences that exist in the financial practices of charities located in 30 metropolitan markets across America. The 40 largest charities in Detroit exhibited the following:

Charities in Detroit remain the lowest scoring in the nation: The median score for the 5,332 charities evaluated by Charity Navigator is 54.26 whereas the median score for Detroit's charities is 50.98 (out of 70). For the third year in a row, Detroit has the lowest median overall score.

Detroit's already large charities are not growing as fast as other charities in the nation: Detroit's median total revenues of $9.7 million (ranked 1st), total expenses of $10 million (ranked 1st) and total contributions of $6.2 million (ranked 1st) indicate that these charities are among the largest in the nation. However, with a median annual revenue growth rate of just 2.8% (ranked 29th) and a program expense growth rate of 2.3% (ranked 30th), this is also one of the slowest growing philanthropic markets in the study.

Detroit’s charities spend more on programs and less on administrative fees than charities in other parts of the country: Detroit’s charities allocate 84.5% of their expenses towards the programs and services they exist to provide. They’ve been able to accomplish this by keeping their administrative expenses in check. Charities in Detroit spend just 7.6% of their budgets on administrative fees. No other city in the study spends less on administrative costs or more on programs.

CEOs at large charities in Detroit report pay increases: The median CEO compensation reported by charities in Detroit is $146,785 (ranked 4th), which is up from last year’s median pay of $125,000 (ranked 12th).

Detroit’s largest charities focus on the arts and human services: 24% of Detroit’s largest charities focus on the arts (the second highest concentration of such groups in the study) and 29% address human services. Detroit has no large religious charities. Among all 5,332 charities evaluated by Charity Navigator, 13% promote the arts, 20% focus on human services and 7% are committed to religious causes.

Detroit’s charities are ahead of the curve when it comes to donor’s rights: 54% of the charities in Detroit have donor privacy policies. Only Milwaukee (71%), Cincinnati (63%) and Kansas City (56%) have more large charities with confidentiality procedures.

FOR MORE INFORMATION CONTACT:
Sandra Miniutti, Vice President, Marketing
(201) 818-1288 x105
media@charitynavigator.org

  Median Value
Performance Metrics Detroit National
Program Expenses 84.5% 80.7%
Administrative Expenses 7.6% 9.7%
Fundraising Expenses 6.8% 7.5%
Fundraising Efficiency $0.090 $0.100
Primary Revenue Growth 2.8% 6.6%
Program Expense Growth 2.3% 6.1%
Working Capital Ratio 0.60 0.70
Overall Score 50.98 54.26
  Median Value
Size Metrics Detroit National
Total Revenue $9,720,848 $4,868,385
Total Expenses $10,068,015 $4,327,121
Excess (or deficit) $132,193 $255,526
Total Assets $9,941,672 $7,024,941
Total Contributions $6,248,546 $3,271,779
CEO Compensation $146,785 $114,038

Size & Wealth
Detroit Charitable Market


Distribution of Detroit Charities

© 2008 Charity Navigator. Note: all data is based on Charity Navigator's May 2008 Metro Market Charitable Analysis Study. These sector reports do not claim to represent median data for all charities. Charity Navigator is the largest evaluator of 501 (c) (3) charities in the U.S.