That's the money that actually goes to help people. Some organizations have great names, but are little more than a way to earn large salaries or commissions for raising funds. They'll claim that they're raising money for handicapped children or disaster relief. Management and general' expenses cover the cost of accounting and legal services, insurance and maintaining an office. One warning about using Form 990 to evaluate expenses.
Some charities receive donated materials and services.
The IRS doesn't allow the value of such donations to be included in Form 990. That makes the percentage spent on fundraising and management go up. To find a more detailed explanation of expenses go to Part II of Form 990. It'll give you an idea of how much money goes to salaries, travel, phone, etc. Who's running the show is also important.