Overhead or overhead expense refers to an ongoing expense of
operating a business; it is also known as an "operating expense".
Examples include rent, gas, electricity, and wages. In the non-profit sector
this expense also includes staff responsible for strategic planning,
organizational development and fundraising.
When thinking about protecting your
organization’s mission it is important to have strong internal structures and
leadership as we have discussed, but it is also important to consider the
systemic factors at play. One controversial systemic factor I have been reading
a lot about recent is organizational overhead. Foundations and individual
donors expect non-profits to work to decrease their percentage of overhead
whenever and however possible. Although efficiency is good, this expectation is
limiting the ability of non-profits to think strategically and spend the money
and time to create and implement this strategy.
The idea of trying to change such a
fundamental element of the industry seems daunting but thankfully I am not
alone. There is a growing movement of a individuals who agree with me that
overhead and organizational development are fundamental elements of creating
and working towards a strong mission. Here are a few samples of tweets,
articles and symbols that are being created to start a movement:
@ImOverhead shared the following tweets
over the summer:
- So yeah. This amazing, inspiring video of children fighting cancer? That's overhead. http://youtu.be/ihGCj5mfCk8 #nonprofits
- Overhead isn't in competition with the cause. It's part of it.@danpallotta (Can I get a heck yeah?)
- Suppressing overhead suffocates #nonprofits and leads to higher turnover, poorer leadership, and worse service. Or did you expect rainbows?
How do you think that we could build and grow this movement?
Educate the philanthropic and giving community? Continue to show the outcomes that
have been reached? This movement has the potentially to make real and
long-lasting changes to the industry and bring a new level of innovation,
professionalism and impact. Share what you have done, I would love to continue
to learn!
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