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[quote=Anonymous][quote=Anonymous]How does this 28% overhead get spent? Is there a place where these expenses are broken down line by line with full transparency?
Did your research yield how much money LC takes in annually? Curious how much that 28% was in actual dollars. [/quote]

I've looked for itemized line-by-line expenses, but haven't found any shared publicly. More transparency would be desirable. I have found some "bigger picture" numbers.

From the 2021 Annual Report linked on the Legacy Collective website:
Since 2015 Legacy Collective has raised over $5mm of which Admin+Ops+Marketing fees claimed 30%

In 2021, LC raised $1,524,188 and gave grants totaling $1,086,779.   Admin+Ops+Marketing were 28% or approximately[b] $426,772[/b].   That accounts for most of what wasn't donated.

Funds raised of $1,524,188 less grants of $1,086,779 = $437,409.   So about $426K of this was admin fees and about $10K left in the pool for future donations.

From the LC website: "Admin and operational costs include Credit Card Fees, Receipting, System Maintenance, Web Hosting, Grant Administration, Project Vetting, Merchant costs, Administrative Support, [b]etc[/b]."  Tell us more what "etc" includes. $427K is a LOT of money.

Of note-  grants in 2020 were only $385,000.  This is quite low compared to the adjacent years, and considering LC raised over $5mm in the first six years of operating.  Makes you wonder what was going on behind the scenes in 2020.  I dont' think COVID wouldn't explain a drop of that magnitude...a lot of charities actually had a strong year in 2020.
However, it's expected that in 2021 and going forward, Legacy would raise significantly more funds under their new 501(c)(3) model. They've launched Corporate Giving Circles and now qualify for corporate matching.

Legacy has an interesting model that requires a monthly commitment. There is no way to make a one-time donation to Legacy Collective, unless it's over and above your monthly contribution.  Clever model to get people locked in, maybe their ideal customer is one that forgets about all those monthly recurring credit card charges? Or doesn't realize that close to 30% of what they donate doesn't reach the intended target?

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