The Overhead Myth and a Call to Action for Nonprofits

By now you’ve probably seen the letter to donors – written and issued by the BBB Wise Giving Alliance, GuideStar, and Charity Navigator – imploring them to consider results rather than overhead expenses when funding nonprofits. It’s powerful and important.

The trio just released a second letter – this time to the nonprofit organizations themselves – in which they ask three things of NPOs to help squash the Overhead Myth. Here’s the gist of how they suggest doing so:

  • Share data about your performance in order to demonstrate why donors should trust you.
  • Manage towards results and understand your true costs.
  • Educate funders on what it costs to achieve results.

The letter notes that, “As a field, we can move beyond the Overhead Myth to an Overhead Solution, but we need your help.” You can read the entire letter, find a list of great resources, and download a toolkit to help you navigate this process on the Overhead Myth website.

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