Ushering In a New Era of Philanthropy

1: The Overhead Myth

 For too long, charities have been measured by the extent of their self-denial and efficiency, yet this is flawed and actually undermines nonprofits' ability to solve big problems.

One of the most common ways we judge nonprofits is by their overhead ratio. But overhead measures spending (inputs), not impact (outcomes).

2: Underinvestment

As donors and funders push organizations to keep overhead low, many nonprofits are forced to underinvest in staff, technology, marketing, and operations. Salaries remain artificially low, making it harder to attract and retain talented leaders. This also discourages marketing as “wasteful”, further eroding nonprofits' ability to build awareness, inspire donors, and grow support.

3: Fear of Failure

You’ve probably heard that most new businesses take 18-36 months before they turn a profit—and even the most well established, successful businesses routinely invest in ideas that fail. Yet nonprofits aren’t allowed the same experimentation, limiting their potential to innovate and grow even more.

4: Starvation Cycle

Together, these expectations create a system in which charities are disadvantaged and unable to achieve their full potential, and the most vulnerable populations pay the price.