My nonprofit friends, it’s time we changed the conversation about “the overhead ratio”: the percentage of your organization’s expenses that go to administrative and fundraising costs. For too long, we’ve let a few bad apples confuse donors about what matters when judging a nonprofit.
This confusion is actively harming the nonprofit community. Experts agree that many nonprofits should invest more in overhead, particularly administrative costs. You all know this as well as I do: You need to invest in your organization to be able to effectively serve your missions.