Nonprofit Overhead Comparison

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Overhead costs and cost to raise a dollar are interesting numbers, but they do not tell us enough. Sure there are thousands of bogus charities. There are even more that are just plain poorly run. To be fair they certainly make it hard for donors to make good decisions in making gifts. However, I know of many nonprofits that have high overhead costs that are worth supporting! Sometimes expanding programs can cause an increase in overhead so as a singular measure it is not enough. I know of many organizations that have a high cost to raise a dollar because they are starting a fundraising program and as a result the costs are staggeringly off kilter. Folks we all missed the boat…we need to be stronger messengers of the sector! It cost money to employ people to deliver programs and it costs money to raise money. We need to be efficent and effective and shout out that sometimes that does not result in the most attractive math. Shout today, tomorrow and everyday. And be proud you are changing lives….

2 thoughts on “Nonprofit Overhead Comparison

  1. A complex subject,one worth spending more time with lay leadership..so that those in governance and volunteer roles can be informed advocates for the mission AND the effectiveness of the organization.

  2. This whole subject bothers me. Yes we should be accountable but to what standard? Just when do we start measuring things like use of paperclips and copy paper? And yet we should be as efficent as we can within reason.

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