Breaking news from the national level: It's time to end the overhead myth.
The CEOs of GuideStar, Charity Navigator and Better Business Bureau Wise Giving Alliance -- the nation's leading nonprofit information providers -- have spoken out to condemn the excessive focus on low overhead costs as a measure of nonprofit performance.
In this historic letter the three leading nonprofit information providers joined for the first time to share the same message: The overhead ratio is the wrong measure to consider when determining if a nonprofit is effective or efficient. Instead, they urge donors to "pay attention to other factors of nonprofit performance: transparency, governance, leadership, and results."
These leaders argue that overhead includes "important investments charities make to improve their work: investments in training, planning, evaluation and internal systems -- as well as their efforts to raise money so they can operate their program."
They ask donors to look at the whole picture: "The people and communities served by charities don't need low overhead, they need high performance."
Take Action: Please join in this nationwide campaign to end the overhead myth.