Measuring Impact, not administration: A primer on charity overhead

Overhead costs
Jan 03 2017

Measuring Impact, not administration: A primer on charity overhead

It’s a fact that people donating to charity increasingly want to know that their donations are making a difference and that the organizations they donate to are spending their money well. Donors want to be sure that they are investing in charities that are deserving of support.

While donors are drawn to causes that resonate with them and generally appreciate the vital importance of the nonprofit sector, a common measuring stick they use to evaluate the effectiveness of an organization (or to compare two organizations) is that of “overhead” or administrative and fundraising costs. In fact, donors and potential donors are expressing significant unease on this topic:

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