The Nonprofit Overhead Baby and the Bathwater: A Need-to-Know for Boards
A successful nonprofit must be financially viable, deliver an effective program, and be mission-driven. When thinking of financial viability, trustees should have a clear understanding of the nonprofit’s business model, full costs, and overhead structure. Unfortunately, the last of these—overhead—is all too often seen as little more than a necessary evil to be minimized as much as possible. We disagree.