The Real Cost of Overhead

Prior to this bombshell exploding, a few staff members had, from time to time, suggested the paper in question be shredded. Not on your life. It costs money to have it shredded and carted away, and it's a real waste not to reuse it. We want the highest rating for the lowest overhead, they were told.

This tale of woe, although culminating in a true crisis of trust, was years in the making. Most such debacles usually are. They start when you create the conditions for them. Like overnight success, the overnight failure is usually 10 years in the making.

Liz's worthy organization sought to be frugal for years. Not a bad thing. Gradually, but surely, this desire to be financially responsible morphed into a cost-cutting monster. That's when the need to keep faith with investors, donors — those who pay the bills — somehow got lost in the desire to maximize cash flow and reduce overhead to zero — if possible.

Every activity has its cost. The key is keeping these costs in proportion to their return. Being willing to re-examine long-held assumptions and make change is essential to remaining relevant to those who support you as well as those you serve. Whenever we believe we have it all figured out, that's a sure sign that we do not.

Recovering from a breach of trust is possible. It won't be easy. It won't happen immediately. As I wrote to Liz in my response to her, you can do it if you're willing to be honest with yourself, 'fess up to your supporters and then ask them how you should move forward.

The last part is the hardest. It's difficult to take direction from others, especially those whose trust we've violated. Assuming the intrinsic worth of our mission without validation from those who invest in us is very risky, however.