Are overhead costs a good guide for charitable giving?
Jonathan Meer, 2017
A commonly used metric for evaluating charities is their overhead cost ratio – that is, the amount the charity spends on administrative and fundraising expenses as a proportion of their total spending. Many charity ratings guides, like Charity Navigator, focus on these measures in their recommendations. Coupled with donor complaints about salaries for the senior staff of some large non-profit organizations, which are considered by some observers to be excessive, it is not surprising that a recent survey by Grey Matter Research found that nearly two-thirds of Americans believe that non-governmental organizations (NGOs) spend excessively on ...
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