Knowing your organization's overhead is essential. This can be calculated from the 990 (add total management and general expense + total fundraising expense, and divide that sum by your total revenue). If it seems high, do some fact-checking. What is the overhead of your competitors? Is there a reason for a higher overhead (i.e., your organization was paying down a mortgage or launching a new program)? Is your overhead reasonable considering mitigating factors that you need to consider? Being able to address a donor's concerns means always being prepared, so make sure you understand this important measurement.
Pamela Barden is an independent fundraising consultant focused on direct response. You can read more of her fundraising columns here.