How to Move Beyond The Overhead Ratio

dan-pallottaAs our industry starts to gain some traction on the campaign to end the overhead myth (thanks to Dan Pallotta’s TED Talk and GuideStar’s campaign launched in June), the question still remains “Where do we go from here?”

According to Pallotta, donors should be asking nonprofit organizations three questions:

  1. What are your big scale dreams – your Apple, Google, Amazon scale dreams?
  2. How do you measure progress towards those dreams?
  3. What resources do you need in order to make those dreams come true regardless of overhead?

In order to find out if nonprofit organizations are ready to move beyond the overhead ratio, Analytical Ones “took to the streets” at the New York DMA conference this summer and interviewed a sampling of development professionals and asked them Pallotta’s three questions. Take a look at a short video compilation by clicking here.

What we found was intriguing. Nonprofit professionals were able to articulate the dreams of the organization but putting specifics around the resources needed to make those dreams come true is a bit more challenging. If we want donors to look beyond overhead ratios, then we as development professionals need to guide the internal discussion on how to get there.

In order to help you facilitate this discussion with your board members and key stakeholders, Analytical Ones has created a free resource to help you. Click here for more information on the white paper, and how to download a copy for free.

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