Charities Urged to Crush Overhead Myth, Take Actions Toward Overhead Solution

1. Demonstrating ethical practice and sharing data about performance by informing donors about their goals, strategies, management and governance.
2. Managing toward results by using performance-based management systems and understanding the true costs of achieving their missions.
3. Educating donors, especially in fundraising materials, about how they accomplish their charity work and not spotlighting financial ratios as a major way to confirm trust.

"Based on the overwhelming response to our first letter to the donors of America, we know that the nonprofit sector is hungry to dispel the Overhead Myth," said Jacob Harold, president and CEO of GuideStar. "Our second letter, addressed directly to nonprofits, builds on that momentum by providing actionable steps so nonprofit leaders can focus on meaningful and measurable results rather than misleading, simplistic overhead ratios."