For a nonprofit to be successful, they must be financially stable, deliver effective programs, and be mission-driven. When thinking of an organization’s financial stability, funders often try to have a clear understanding of the nonprofit’s operations, full costs, and overhead structure. Unfortunately, the role of overhead is often disputed. This dispute is often referred to as the overhead myth – the belief that a certain level of nonprofit overhead automatically begins to diminish the effectiveness of its programs.

Overhead analyses can be a great way to understand the internal workings of a nonprofit and its programs. However, funders, trustees and nonprofit managers need to also provide and analyze other important indicators of program efficiency and effectiveness. Overhead should also be presented in an effective fashion that shows the true cost of programs and mission.

Join us as our panel discusses new ways to dispel the overhead myth and communicate the true costs of managing nonprofit programs.