We often think about overhead as an entirely bad thing, and charities in have engaged in a race to the bottom on this, but why don't we talk about impact? I find this quite staggering. If Charity A has a stated overhead of 50% and Charity B has a stated overhead of 10%, most of us will assume that it is better to give our donation to Charity B. However, what happens if Charity A is having 10 times more positive impact on its recipients/clients than Charity B? In my view, we need to be talking and thinking much more about the impact the charity has rather than its overhead. I also realise that one of the challenges is how do we measure the impact of charities, but there is much improvement happening in this area. If we as members of society ask charities for impact reports, things will change.
Take a watch of the video and let us know what you think.
This raises challenges for us as Give Aid Direct as well. We don't have all the answers yet, but we too want to challenge the accepted norm in our attempts to improve impact.
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