You can’t make a lousy charity good by having a low overhead.
Overhead is fuel. Not fluff.
Overhead is a virtue. Not a vice.
Overhead is pivotal. Not peripheral.
Overhead is operational. Not optional.
Overhead is investment. Not indulgence.
And the right overhead 𝘤𝘢𝘯 make ‘a lousy charity good.’
So here are 35 essentials worth investing in:
Brand
Utilities
Salaries
Technology
Fundraising
Recruitment
Mental health
Infrastructure
Staff retention
Theory of change
Risk management
Spiritual wellbeing
Legal consultation
Strategic planning
Employee benefits
Contingency funds
Positioning strategy
Succession planning
Advocacy & lobbying
Innovation & research
Equipment & supplies
Organizational culture
Monitoring & evaluation
Team-building activities
Stakeholder convenings
Leadership & staff training
Marketing communications
Diversity, equity & inclusion
Accessibility enhancements
Partnerships & collaborations
Intellectual property protection
Ethical standards & compliance
Financial management systems
Climate & environment initiatives
Board development & governance
But these critical factors in nonprofit performance are still underfunded, deprioritized, and considered inessential bloat.
So let’s zoom in further. 👇🏽
Nonprofits actually lose out on money when categorizing some of these items as indirect (overhead) vs. direct costs (program-related).
“What’s more important is the practice of considering whether an expense advances your impact,” advises Jenna Rogers-Rafferty from Raise Up.
“If you can justify that it does with a straight face to your funder, you should consider it a direct cost and feel empowered to defend that decision.”
But the issue is bigger than skillful budgeting. ⤵
“The focus on overhead is no longer just annoying, it’s perpetuating inequity and injustice,” says Vu Le at NonprofitAF. 🦄
Unlike some social justice challenges we’re fighting — with no known solutions yet — the overhead myth is a positioning and storytelling problem.
In other words: a brand opportunity.
Sadly, says Le, nonprofits are one of the biggest drivers of this narrative.
“It’s time for a change. Stop furthering the idea that ‘overhead’ is bad. Operating, administrative, and fundraising expenses are necessary for us to do effective work.”
My opinion is that the ‘100% to the cause’ pitch is the worst offender.
It’s a short-term win, but a long-term loss — for you and the sector.
Although foundations must evolve too.
“If you are restricting funding and focusing on overhead, you are actively preventing nonprofits from doing their work. You are helping to spread the fires of injustice.”
So what am I missing from this list of 35 overhead essentials?
Let’s shift the narrative.
Because myths hold power only if we let them.
💪🏽💛
The Daily Bonus
A great video that illustrates the overhead point:
What if pizza shops were funded like... nonprofits?
Nonprofit: “That won’t cover my costs.”
Donor: “Find someone to make up the difference.”
“Just imagine how much more efficient you would be with 20% less than what you should be given,” the funder says.
Common sense: “That’s bullsh*t.”