Wednesday, June 19, 2013

"Overhead Myth" Blasted by GuideStar, BBB Wise Giving Alliance, and Charity Navigator


WASHINGTON, DC---In a historic move, the leaders of the country's three leading sources of information on nonprofits—GuideStar, Charity Navigator, and BBB Wise Giving Alliance—penned an open letter to the donors of America denouncing the "overhead ratio" as the sole measure of nonprofit performance. The letter, signed by all three organizations' CEOs, marks the beginning of a campaign to correct the common misconception that the percentage of charity's expenses that go to administrative and fundraising costs—commonly referred to as "overhead"—is an appropriate metric to evaluate when assessing a charity's worthiness and efficiency.