End the Overhead Myth

Deze blog post is in het engels

The Overhead MythHave you ever judged a business on its marketing spend, staff costs or general overheads? No. We judge businesses on their results.

However, when it comes to charities over the past years everyone has been judging them primarily on the percentage of overhead as the main indicator of performance. Jazi has long disagreed with this measure and has been supporting a change in thinking. We believe charities should be judged on their results: impact.

This week an unprecendented event took place. Three leading and competing organisations that provide in-depth charity information, have admitted that their past approach was wrong. They have come together to help end the overhead myth. Guide Star, Charity Navigator and BBB Wise Giving Alliance have written an open letter to the donors of America, urging them to look at the whole picture, such as transparency, governance, leadership and results.

We all know businesses are only able to grow with a good solid infrastructure, and nonprofits need this too in order to succeed. It’s about time donors value this so that charities can improve their work, invest in their people, upgrade internal systems, plan and fundraise, so they can sustain itself and fulfil their mission effectively.

So how did this all come about? Well, after more than 2 million views of Dan Pallota’s TED Talk called The way we think about charity is dead wrong”, it seems people are finally listening.

Visit The Overhead Myth website, especially created for this purpose, to read the original letter signed by the three CEO’s, and more information. What are your thoughts on this issue? Will this change the way you currently give?