Nonprofits have been asking this question for years, probably since the first nonprofit existed. Even if they aren’t ‘hard’ costs, your nonprofit likely has a cost of fundraising. It could be a staff member (either full or part time), event costs, an online platform, and presence, postal charges or participation in local programs. Most times these costs are rolled into “overhead,” and as long as that amount can pass the reasonableness testing, it shouldn’t raise any red flags
There has long been a common belief that charities should spend every penny they raise on the programs and services they deliver. Maybe a better word is fantasy because no organization can survive without overhead – you have to pay your staff, you need space to operate, computers and phones, supplies, and the occasional training or seminar.
So does that mean if every penny doesn’t go into programs that the charity is 'wasting' your donation? Absolutely not, in fact, spend