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
Congratulations to Our Members Recognized Among America’s Favorite Charities
Each year, The Chronicle of Philanthropy releases its list of America’s Favorite Charities—the 100 nonprofits that raise the most from individual donors, foundations, and corporate…
Read ArticleThe Future of Corporate Giving: How Nonprofits Can Prepare
Corporate giving is a valuable part of the nonprofit funding ecosystem. Companies large and small have incorporated philanthropic efforts into their overall business plans, from…
Read ArticleJoin Us at the Workplace Fundraising & Volunteering Summit!
We’re excited to announce that America’s Charities President, Jim Starr, and Board Member, Fernando Lorence of JP Morgan Chase, will be speaking at the Workplace…
Read ArticleGet 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.