Quadriga Art Thought Leadership - What is the Overhead Myth and why we need to stop it.
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 a valid indicator of nonprofit performance.
The letter, signed by all three organization’s 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, on its own, an appropriate metric to evaluate when assessing a charity’s worthiness and efficiency. The nonprofit sector, which all three organizations provide information to and about, has too often erroneously focused on overhead over the past few decades, which has starved nonprofits from investing in themselves as enterprises and created what the Stanford Social Innovation Review calls, “The Nonprofit Starvation Cycle.”>br>
We need your help in eradicating the Overhead Myth once and for all. In doing so, we will help to ensure that nonprofits have the resources to invest their own sustainability and success! Visit overheadmyth.com.
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Quadriga Art is a global leader in direct marketing and creative services. Led by CEO Mark Schulhof, we offer nonprofit organizations, fundraising agencies and commercial brands innovative direct marketing campaign solutions that produce extraordinary results. For more than seventy years, Quadriga Art has helped value-driven clients raise money and create connections. At the core of our company’s values is a focus on innovation, entrepreneurship, creativity and a deep and abiding sense of responsibility to the clients and communities we serve.
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