The NonProfit Overhead Myth – Devil in the Details

A frank discussion of the overhead myth may impact the very survival of nonprofits. Article in the September-October issue of Nonprofit World?

Click to access V310509.pdf


  1. Thanks for this posting Gene. I’m delighted to see this issue being addressed, its long overdue, so long overdue in fact that the impact of the recession has almost rendered it obsolete from the perspective of a small non profit. Why? Because in my world at least few funders will even allow their dollars to be used for operating expenses any more. While this was uncomfortable at first my strategic thinking tells me that in the long term the sector will be better off. Having a plan specifically to cover overheads/operating costs will make an organization more sustainable and for small non profits that’s a good thing. Whether the economy can sustain all the golf outings, galas and other asks that result from this . . . who can say?!


    1. Andrew: Nonprofits have to keep the lights on, paid by overhead dollars. Instead of endless golf outings, galas, we ought to conifer, “non activities” to raise overhead funds funds. Donors might appreciate not having to attend many of these events.


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