Sarah Ford | June 18, 2013
Help End the Overhead Myth
Instead of focusing on the percentage of charity鈥檚 expenses that go to administrative and fundraising costs鈥攃ommonly referred to as 鈥渙verhead鈥濃攚e need to focus on what really matters: impact.
, , and published an open letter to the donors of 精东影业 denouncing the 鈥渙verhead ratio鈥 as a valid indicator of nonprofit performance. 听The letter, signed by all three organizations鈥 CEOs, marks the beginning of a campaign to correct the common misconception about the importance of a low overhead ratio.
The open letter, published last week on a new website , states that 鈥淥verhead costs include important investments charities make to improve their work: investments in training, planning, evaluation, and internal systems鈥攁s well as their efforts to raise money so they can operate their programs. When we focus solely or predominantly on overhead鈥e starve charities of the freedom they need to best serve the people and communities they are trying to serve.鈥 The letter goes on to recommend that donors focus their attention on more relevant factors behind nonprofit performance: transparency, governance, leadership, and results.
Learn more and help spread the word (and truth) about this important topic.听 Let鈥檚 end the Overhead Myth TODAY! Visit for more information.
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