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Like your donors, you want as much of your nonprofit's funds to go directly to the cause it supports. However, you also know that there are a lot of administrative and operational costs involved in your organization, and those can add up. So how do the most successful nonprofit organizations manage to keep their overhead to a minimum without sacrificing productivity?
Some experts suggest calculating your overhead ratio by dividing administrative and fundraising costs by your nonprofit’s total expenses. And while that can be a helpful reference point, there are plenty of savvy ways to keep expenses well below that ratio.
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