[Dilmah G]

For those of us who aren't religous TED watchers, here's a good video on why the way that we think about charity worldwide hurts the not-for-profit sector.

In particular, the question of 'what percentage of your money actually goes toward your cause?' DP explains at some length as to how this mentality basically puts a stop to NFPs growing larger, and so we have bake-sales netting $71 with 5% overheads, whereas they could have committed 40% overheads and grown to a point where that 60% slice of the pie (which has now grown!) sends $71 million to charity.

The video explains it far better than I could, and it's well worth your time!

[bobbtmann]

This is a good video. He really challenges the common idea on how charities should be run. I even felt myself be a bit repulsed by the idea of running NPO's like a for profit organization.

[Dilmah G]

Indeed, that video is a real eye-opener. Before watching it I would've been pretty repulsed too.

[bobbtmann]

I sent this link to my sister, who is a director of a local charity. She's noticed this problem with overhead-fear as well. Every time her group gets funding or donations, there are strings attached. The strings are that none of the money can be spent on overhead.

 It' so bad that her group has almost had to close shop on numerous occasions because she can't pay employees (they're overhead), buy equipment to needed to achieve their mandate (that's overhead), or let people know they exist (that's overhead as well). The group's very existence is considered overhead.