Charities Push Back Against Overhead as Effectiveness Measurement

Three large charity effectiveness ratings agencies—GuideStar, Charity Navigator, and BBB Wise Giving Alliance—have joined together in an open petition to donors that the percentage of money spent on administrative costs is not a complete indicator of how well a charity spends the money it is given.

Overhead costs are often used as a significant determinant of how much a nonprofit organization actually spends on programs for the intended recipients.