2 Accounting Issues You Need to Understand

Such a characterization is patently false. Those charities with the greatest impact tend to be those with the best management and the most effective fundraising. Not surprisingly to anyone familiar with either the business or nonprofit worlds, the most successful management and marketing programs cost money. Thus, the way to judge a charity is not on overhead ratios (high or low), but rather on the effectiveness of the organization. The most important metric is the outcome of its programs. Other important metrics can include its growth, the quality of its management and, of course, the importance of its mission to the donor considering where to give.