Nonprofits need to make their donors feel like they are changing the world. One of the main reasons people don't give is because of futility. They don't feel that their donation will make a difference.
Like any other business, nonprofits need funding to effectively fulfill their mission and serve their populations. And yet, charitable organizations are too often under fire for fundraising and operating costs.
This Giving Tuesday, let's think twice about our overhead obsession and what it might mean for the very same organizations we're rooting for. And let's give thanks to those who have chosen careers dedicated to solving big problems that affect us all.
The "overhead myth" is centered on the idea that nonprofits are valued by how little they spend on overhead. Overhead includes salaries for non-program management, office space, office technology and office supplies -- the non-sexy budget line items of a nonprofit organization.
Charity Navigator, a web site that provides potential donors with a way to evaluate in which nonprofits to invest, has announced a shift in how it will evaluate nonprofits itself. Some nonprofits are up in arms over whether such reporting will be fair and sufficiently nuanced.
Non-profit organizations are businesses just like any for-profit entity, but with a social mission. They have to invest not only in the "product," but also in the systems, infrastructure and operations to support the end product.
In today's competitive environment, few companies can afford to overlook the opportunity to achieve this next generation of cost savings, which could amount to as much at 1 percent or more of a firm's profit margin.