Sarah Ford | October 21, 2014

Help Move the Nonprofit Sector from an Overhead Myth to an Overhead Solution

By Jacob Harold, President and CEO, GuideStar

In 2013, I joined with colleagues at BBB Wise Giving Alliance and Charity Navigator to write an open letter to the donors of Americaexplaining that “overhead ratios” are a poor way to understand nonprofit performance. As you know, these ratios—the percent of charity expenses that go to administrative and fundraising costs—tell us nothing about an organization’s performance against its mission.

We believed that the nonprofit sector was hungry to dispel this “Overhead Myth.” The field’s extraordinary reaction to the first letter has thunderously affirmed that belief. Today, we build on that momentum by offering a second letter, this one addressed to the nonprofits of America. In this second letter we suggest a set of steps nonprofits can take to help us all move beyond the Overhead Myth.  In simple terms, we must—collectively—offer donors an alternative. We believe it will take a shared effort to focus donors’ attention on what really matters: nonprofits’ efforts to make the world a better place. Please join us as we seek to move from the Overhead Myth to the Overhead Solution.

Also Read:

Be Part of the Overhead Solution: An Effort to Measure What Matters Most

Get Resources and Insights Straight To Your Inbox

Explore More Articles

Open Position: Customer Service Coordinator (Remote-Part Time)

November 13, 2024

Position Title:  Customer Service Coordinator (Remote – Part Time) Department:  Charitable Funds Management Solutions  We are a non-profit charitable organization looking for skilled individuals who…

Read Article

National Alzheimer’s Disease Awareness Month

November 5, 2024

President Ronald Reagan designated November as Alzheimer’s Disease Awareness Month in 1983 when there were less than two million people suffering from the disease. Since…

Read Article

National Scholarship Month/National Education Month

November 5, 2024

National Scholarship Month/National Education Month aims to build awareness of scholarships and opportunities in higher education. Established in 1998, it recognizes communities, organizations, and businesses within the…

Read Article

Get Resources and Insights Straight To Your Inbox

Receive our monthly/bi-monthly newsletter filled with information about causes, nonprofit impact, and topics important for corporate social responsibility and employee engagement professionals, including disaster response, workplace giving, matching gifts, employee assistance funds, volunteering, scholarship award program management, grantmaking, and other philanthropic initiatives.

newsletter-mock