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The difference between a charity and foundation

Ross Stevenson from 3AW Breakfast has come up with an idea to help keep charities and foundations accountable – a rating system.

Australian cricket great Shane Warne was called into question this week after a report in The Sunday Age revealed his foundation raised $1.8 million in three years but donated an average of only 16 cents of every dollar to institutions that care for sick and underprivileged children.

Warne has since hit back, telling the Herald Sun his foundation had raised $7.8 million since it started work 11 years ago.

Tessa Boyd-Cane, Deputy CEO at ACOS Australian Council of Social Service, told 3AW Breakfast the charity industry was heavily regulated.

‘All charities, no matter what state they’re in,’ she told Ross and John.

‘It’s incredibly important to charities that they have the trust and confidence of the public.

‘That’s absolutely critical to them working well and effectively.’

Which led to Ross fielding his idea.

‘Every time I go to wash my clothing, my washing machine tells me how it’s rated for energy consumption,’ he explained.

‘Would it be handy for charities to have a rating system, whereby when they collect money from you it shows what star rating they are for passing on their money to the intended beneficiaries.’

Click PLAY below to hear Tessa Boyd-Cane explain more on 3AW Breakfast