Funding Overhead Ratios – What Every Nonprofit Should Know

Funding Nonprofit OverheadAre overhead ratios reliable indicators of sound nonprofit performance and stewardship?  Many experts believe they are NOT – pointing to outcome-based measurements as a much more trustworthy indicator.

Big strides have been made recently in the acknowledgment that overhead ratios are poor indicators of an organization’s impact or financial efficiency. Although the movement toward outcomes-based measurement offers a promising alternative to understanding impact, very little has been done to truly shift the sector’s understanding of what it takes—or even means—for nonprofits to be financially efficient and adaptable. The myths and misinterpretations of the true full costs of delivering vital programs have contributed to a chronically fragile social infrastructure for our communities.

This webinar presents a conceptual review to help nonprofit executives’ understanding of the issue, frame overhead costs and how it’s related to funding and mission.

This webinar is presented by Clair Knowlton, Director, Nonprofit Finance Fund; hosted by Nonprofit Quarterly; and sponsored by AccuFund.