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Why Funding Organizational Overhead Is Important

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Overhead is the energy which makes all the good things happen. A car either runs on low octane or high octane gasoline. A charity is no different. It does not achieve Class A results without a good team. Provided an organization has quality leadership, donor funding of operating overhead enables quality staffing and operation which yields effective high-quality results for the organizations' beneficiaries. And those beneficiaries appreciate it.

This web page aggregates academic and professional publications on this matter for the purpose of encouraging proper funding toward the end of enabling this organization to best fulfill its mission for its beneficiaries.

Getting What We Pay For: Low Overhead Limits Nonprofit Effectiveness, Urban Institute Center On Nonprofits And Philanthropy, August 2004.

Paying for Overhead: A Study of the Impact of Foundations' Overhead Payment Policies on Educational and Human Service Organizations, The Center On Philanthropy at Indiana University, Patrick Rooney, Ph.D., and Heidi K. Frederick, Assistant Director of Research, March 2007

 Foundation Support For Nonprofit Core Operations, Snapshots, Research Highlights From The Nonprofit Sector Research Fund, The Aspen Institute, September 2007

In Search of Impact: Practices and Perceptions in Foundations' Provision of Program and Operating Grants to Nonprofits, The Center for Effective Philanthropy, Judy Huang, associate director, Phil Buchanan, and Ellie Buteau, Ph.D., 2006.