To the Donors of America: We write to correct a misconception about what matters when deciding which charity to support. The percent of charity expenses that go to administrative and fundraising costs - commonly referred to as "overhead" - is a poor measure of a charity’s performance. We ask you to pay attention to other factors of nonprofit performance: transparency, governance, leadership, and results. For years, each of our organizations has been working to increase the depth and breadth of the information we provide to donors in these areas so as to provide a much fuller picture of a charity’s performance. That is not to say that overhead has no role in ensuring charity accountability. At the extremes the overhead ratio can offer insight: it can be a valid data point for rooting … [Read more...]

by Robert I. Evans and Avrum D. Lapin| Since late in 2012 and continuing onward through 2013, we are witnessing a heated discussion about the future of the federal charitable deduction. Being called into question is the long-standing federal tax deduction donors receive for part or all of the philanthropic support of charitable and religious entities. While the U.S. Government has put the charitable deduction “on the table,” nonprofits have taken a stronger stance than ever to defend this critical provision for tax deductions. But more efforts are required! … [Read more...]