The overhead myth is the almost universally-accepted notion that the less a charity or nonprofit organisation spends on overheads or administration, the more effective and virtuous it is. The problem, of course, is that the overhead myth is just that. A myth.

Common sense and business logic alone should be enough to convince most people that there is no merit to the myth. But the data, too, supports this conclusion. Analysis by Giving Evidence in 2013 revealed charities that invested less in administration were more likely to be poor performers.

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AuthorJuanita Wheeler