Donors Not as Concerned About Overhead as Believed

Grey Matters Research recently reported:

“Most American charitable donors feel the typical non-profit organization spends too much on overhead, administration, and fundraising (the “overhead ratio”).  The average donor considers 19% spent on overhead to be a reasonable limit, but believes the typical charity spends 28%.

At the same time, donors often have no idea what their favorite charity actually spends on overhead.  And while there are widespread perceptions that charities in general spend too much, nearly half of all donors have a favorite charity that reports an overhead ratio of 20% or higher…

…we see no evidence that scrimping to drop your overhead ratio from 19% to 16%, for example, will make your organization significantly more appealing to donors.”

For the full article, please click here .  They also provide a link to receive a copy of their report if you’re interested.

 

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