The Oregon Faith Report - Faith News from Oregon

Busting the Charity “Overhead” myth

November 21, 2014 --

BBBBy Katherine Hutt
Oregon Better Business Bureau

When it comes to your charity dollars, what’s more important than how much a charity spends on its fundraising and administrative costs? Well, a lot actually.

Three leading charity evaluators say effectiveness is key and that the “overhead myth” that emphasizes financial ratios leads to simplistic information that can be misleading.

BBB Wise Giving Alliance has joined with GuideStar and Charity Navigator to urge charities to “help crush the false notion that overhead ratios serve as the sole basis for trusting a charity.”

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