Dispel the Overhead Myth with Honesty


If you read the numerous nonprofit trade periodicals and various newspapers in 2013, you know that the topic of “the overhead myth” was a big one last year.   Dan Pallotta gave a  TED talk about it that went viral on the internet.  Nonprofit writers and bloggers posted articles about the need to be more realistic about overhead costs.  The state of Oregon passed a law removing charitable status from organizations that spent too much on overhead.  The Tampa Bay Times, The Center for Investigative Reporting, and CNN collaborated on an expose of fifty charities that took in vast amounts of money and spent a fraction on charitable causes called “America’s Worst Charities.”  Charity watchdogs BBB Wise Giving Alliance, Charity Navigator, and Guidestar joined forces on an open letter to funders asking them not to judge charities solely on overhead costs.  The “overhead myth” is the talk of the…

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