The following letter to the donors of America was penned by the leaders of the country’s three leading sources of information on nonprofits – GuideStar, Charity Navigator, and BBB Wise Giving Alliance. The letter is made available the the public under the Attribution-NoDerivs Creative Commons license, which allows for it to be shared and distributed for any purpose so long as it remains unchanged. You may download a PDF of the letter here. - re-posted from overheadmyth.com
To the Donors of America:
We write to correct a misconception about what matters when deciding which charity to support.
The percent of charity expenses that go to administrative and fundraising costs—commonly referred to as “overhead”—is a poor measure of a charity’s performance.
We ask you to pay attention to other factors of nonprofit performance: transparency, governance, leadership, and results. For years, each of our organizations has been working to increase the depth and breadth of the information we provide to donors in these areas so as to provide a much fuller picture of a charity’s performance.