Last week, I was asked to record a 15 minute “Podcast” for Vantage Point on the Overhead Myth.
Historically, some donors and charity rating agencies have tried to evaluate and compare charities using the percentage of income that they spend on management and administration (overhead).
The main message of the podcast is to provide a summary of the research that has been done on this issue – virtually all of which supports the position that using this metric to evaluate or compare charities will likely lead to misleading results. It is the wrong question to ask if you are trying to compare the effectiveness of different charities. I also talk about what we can do as funders and as organizational leaders to help shift the conversation to impact rather than overhead.
If you are interested, you can listen to the podcast (or download it) by clicking on the link below: