September 10, 2009 | Read Time: 1 minute
The daughter of a former foundation leader has waded into one of the most dicey debates in the nonprofit world: whether to evaluate charities based on their overheard costs.
Sandy Stonesifer, the daughter of Patty Stonesifer, who used to lead the Bill & Melinda Gates Foundation, ponders the question in her philanthropy advice column in Slate magazine.
She points out the various ways charity watchdogs and others weigh administrative expenses, but ultimately she questions the approach.
“Looking at a charity’s financial information is great, helpful even, but it doesn’t give you the full picture,” she writes. “You wouldn’t base a financial investment solely on a company’s overhead, would you?”
Her advice: “Use the financial information for what it is worth—an easy indicator of an organization’s financial health and expenditures—but don’t let it alone determine how you donate.”
What do you think? Do you agree with her advice?
