How To Share The Message We need your help! License, which means that you can use either letter to communicate can nonprofit organizations invest money message to your donors and other stakeholders. The tools and resources listed below can help nonprofits move beyond the Overhead Myth, towards the Overhead Solution, by proving their worth based on impact.
Your Comments We need your help in moving towards an Overhead Solution. In doing so, we will help to ensure that nonprofits have the resources to invest their own sustainability and success! My career of 40 years includes for-profit, government and nonprofit. It is the nonprofit arena that struggles with overhead.
The agency I am currently working with is mostly funded through government grants that allow and expect to pay overhead, our current rate is 42. If we really want to change the world, lets invest in that change — general operating funding support good programs to become great! I congratulate you for tackling this issue. I am equally frustrated by the use of this metric to determine effectiveness. I also teach in Georgetown’s Public Relations and Corporate Communications graduate program. Many of my students are interested in cause related careers. I often, in my lectures, discuss how nonprofits are nonstrategic in their work.
The reliance on overhead, as a measurement of effectiveness, certainly contributes to this as it focuses donors, staff and volunteers on the wrong objectives to achieve. I have never used that percentage as a measure of a charity’s effectiveness or its responsible use of monies received. I look more at things like ceo salary to tell me what the charity’s priorities are. I would agree that anyone working for a charity, even a very large one, should probably think twice about accepting a three-quarters-of-a-million dollar salary. And good for you for giving locally. Those are often the charities that need the most support and have the least access to big national fundraising campaigns. I make more than that as CEO but I don’t pay myself, my board pays me to lead and grow our organization.
Without me and these staff there would be no program, and no children would be helped. Our salaries are part of the overhead percentage that is being discussed here. Please try to look at this more objectively. Size of salary has nothing to do with competence.