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Nonprofits may need to spend about one-third of their budget on overhead to thrive – contradicting a rule of thumb for donors

  • Written by Hala Altamimi, Assistant professor of Public Administration, University of Kansas
Nonprofits may need to spend about one-third of their budget on overhead to thrive – contradicting a rule of thumb for donorsTo serve the public, museums need to spend money on outreach.Barry Chin/The Boston Globe via Getty Images

Nonprofits that spend more on information technology, facilities, equipment, staff training, program development and fundraising tend to be more successful than those that scrimp on these"overhead expenses.“ But many donors are reluctant...

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