114: It's Time to Bust the Overhead Myth! Special Invitation: www.nonprofitmythbusters.com + Conversation with Michael Thatcher, Charity Navigator CEO

<p><span style="font-size: 14pt;"><strong>Join the Nonprofit Mythbusters: <a href= "http://www.nonprofitmythbusters.com">www.nonprofitmythbusters.com</a></strong></span></p> <p><span style="font-size: 14pt;"><strong>Getting Over the Nonprofit Overhead Myth</strong></span></p> <p>In 2013 Dan Pallotta released his <a href= "https://www.youtube.com/watch?v=bfAzi6D5FpM" target="_blank" rel= "noopener">TED Talk</a> that called out what is now known as The Overhead Myth. The nonprofit sector was hopeful that things might turn around.</p> <p>Now, almost a decade later, has anything changed? Have we stopped judging organizational effectiveness based solely on how much (or how little) a nonprofit organization spends on operational costs?</p> <div> <p>I've rounded up some nonprofit colleagues and thought leaders to join me in a roundtable conversation about this important topic, and <a href="https://www.nonprofitmythbusters.com/" target= "_blank" rel="noopener">you are invited to listen</a>. </p> <p>It's not enough to say something's wrong with the way things are done. We need to educate and provide better tools to truly shift the status quo.</p> </div> <h3>Reframing the Nonprofit Narrative</h3> <p>While interviewing Michael Thatcher, CEO of Charity Navigator, the topic of overhead came up. Today I'm sharing a transcript of the conversation with you:</p> <p><strong>Michael Thatcher: </strong>So one of the things I think that's important with the new platform is, and what we're trying to do with the ratings, is to re-articulate the nonprofit narrative. So that there's not this tremendous focus on overhead, and how much gets spent on programs, but actually shift donor perceptions away from that towards what's the impact? And what are the results that the organization is making? What are the other attributes that actually make me want to invest in this organization?</p> <p>Ultimately, when we're looking at overhead, we're looking at where money's being spent. We're not looking at what money's actually achieving. The only way