Charities Must Battle Public Misconceptions About Overhead Costs

September 18, 2012

Dan Pallotta authored a thought-provoking article last week in The Chronicle of Philanthropy urging the nonprofit sector to unite together in battling what he labels a common misconception in the public about appropriate levels of overhead costs for tax-exempt organizations.  Pallotta argued that misconceptions about the virtue of low overhead costs, and the refusal of charities to correct this view, are hurting the sector and frustrating its leadership.

“If we roll over and accept the public’s misguided approach to giving—and any approach that stifles the growth we need to solve problems is deeply misguided—then, yes, all hope in our ability to change the world is lost. We should all go home.”  Pallotta called for a movement “to transform the way public thinks about charity, about giving, and about how change gets made.” 

The full article can be accessed here.

Source: The Chronicle of Philanthropy

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