What percentage of St. Jude donations go to administrative costs versus patient care?
Executive summary
St. Jude’s own reporting says 82 cents of every dollar received goes to support treatment, research and patient care over the past seven years (82%) [1] [2]. Investigative reporting from ProPublica and related analyses say roughly half of recent contributions went to research and patient care, with about 30% used for fundraising and about 20% added to reserve funds (roughly 50% care/research, 30% fundraising, 20% reserves) [3] [4].
1. Two competing pictures: St. Jude’s public claim versus investigative accounting
St. Jude’s website and financial pages state that “82 cents of every dollar received” goes to support treatment, research and the hospital’s needs, a figure the charity highlights across FAQs and financial summary pages [1] [2]. By contrast, ProPublica’s February 2024 investigation, based on IRS filings and ALSAC/St. Jude financial data, concluded that about half of roughly $7.3 billion in contributions over five fiscal years actually covered research and patient care, while 30% paid fundraising operations and 20% increased reserve funds [3]. Both claims rely on different accounting perspectives and timeframes [2] [3].
2. How the organizations measure “where a dollar goes”
St. Jude’s 82% figure is presented as the share that “goes to support the treatment, research and future needs of St. Jude” and appears across its financial FAQ and charity-rating pages; it combines donations with grants, insurance recoveries and investment returns in that calculation [1] [2]. ProPublica derived its breakdown by examining IRS filings and ALSAC’s financial statements and separating dollars spent directly on hospital operations and research from those spent on fundraising and amounts moved into reserve accounts [3]. The difference reflects distinct allocation rules and whether transfers to reserves or to ALSAC are counted as program expense [2] [3].
3. Fundraising costs and reserves: the center of disagreement
ProPublica emphasizes that roughly 30% of donations covered fundraising operations — salaries, advertising and outreach — and that another 20% of donations were directed into reserve funds rather than immediate patient care or research [3]. St. Jude and ALSAC argue that building reserves is legitimate stewardship for future operations and that investments in fundraising sustain the institution’s revenue model; St. Jude’s site notes the figure about 82% going to mission work without breaking out fundraising versus reserves the same way [2] [5]. The two accounts therefore reflect different judgments about whether money routed to reserves or to fundraisers should be treated as mission spending [2] [3].
4. Context from independent evaluators and academic commentary
St. Jude cites favorable charity ratings — including a four-star Charity Navigator rating and other recognitions — alongside its 82% claim [1] [6]. Academic and journalistic sources question large fundraising footprints for major health charities, noting that some hospitals can spend very high percentages on fundraising and that large reserves raise donor expectation issues; a peer-reviewed commentary points to scrutiny over fundraising practices and mentions the ProPublica reporting on St. Jude [4] [3].
5. What donors need to know when judging “administrative” versus “patient care”
Available sources show St. Jude frames the 82% number as money supporting treatment, research and future needs [1] [2]. Investigative reporting shows a different split when IRS-style expense classifications and reserve transfers are counted separately: about 50% to care/research, 30% to fundraising, 20% to reserves [3]. Donors should therefore ask which accounting method is being used: program-support percentage that includes reserve and related flows (St. Jude’s presentation) or operational/IRS expense breakdown that separates fundraising and additions to net assets (ProPublica’s method) [2] [3].
6. Limitations, unanswered questions and where to look next
Available sources do not provide a single standardized, line-by-line mapping of “every donated dollar” across the same time period using both organizations’ classifications side-by-side; reconciling the two approaches requires reviewing ALSAC/St. Jude combined financial statements and IRS Form 990s for the exact fiscal years ProPublica examined [2] [3]. Donors seeking clarity should request or review St. Jude’s Combined Financial Statements and ALSAC’s filings (contact information is listed on St. Jude’s financial pages) and compare those figures to the tables cited by ProPublica [2] [3].
7. Bottom line for readers
Both presentations are fact-based but use different accounting lenses: St. Jude’s public materials claim 82 cents of every dollar supports treatment, research and future needs [1] [2]; investigative reporting that parses IRS-style expenses and reserve increases finds a lower immediate-share to care and research — about half — with substantial shares to fundraising (30%) and reserves (20%) [3]. The apparent discrepancy is driven by definition and accounting choices, not simply error; donors should review the underlying financial statements and decide which allocation method aligns with their expectations [2] [3].