CCAH Blog: Industry Voices

The Overhead Myth

Posted by CCAH Admin on Jul 12, 2013 3:46:00 PM

By Jim Hussey, Chairman | If one nonprofit organization only spends 3% of its funds on overhead, while another spends 30%, which is better managed?  Until recently, the automatic answer by those who monitor such things would be the first organization. The percentage of overhead has been the chief determinant to designating the best charities.

But recently, the three major watchdog organizations which monitor the nonprofit community … the Better Business Bureau, GuideStar and Charity Navigator … released a joint statement entitled “The Overhead Myth”which acknowledges that the true answer is not so clear cut.

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