The less a nonprofit spends on overhead, the better, right? After all, that leaves more money available to fund the charity’s programs. It’s simple logic. Many potential donors rely on the ratio of overhead expenses to total spending to judge a nonprofit’s efficiency in achieving its goals. And for many, a charity’s efficiency is an important factor—sometimes the determining factor—in deciding whether to make a contribution.

Source: Wall Street Journal December 17, 2018 03:00 UTC