Alexa Clay, commenting on how “overhead” is a bad metric on which to judge a non-profit:
The problem is this overhead supports the cause, and zeroing it out means that the 99% non-overhead may be spent poorly or non-strategically, especially in smaller organizations. Programmatic costs may pay for the work, but overhead pays for the tools to do the work well.
It makes sense – overhead means you are investing in growing so you can better serve your cause. This is different than the recent list of America’s worst charities, which was based on solicitation costs. What this is saying is that as a non-profit, if you can invest $100 in overhead that generates $500 in return, it’s a good investment.