Charity CEO? You need to read this!

We Believe Dan Pallotta has important message you need to talk to your supporters and board members about.

Dan Pallotta is a renowned speaker and author who has been a strong advocate for changing the way we think about non-profit organizations. In his TED Talk, "The Way We Think About Charity is Dead Wrong," he challenges the traditional approach to non-profit management and argues that it is time to adopt a new model that focuses on long-term impact rather than overhead costs.

One of the key lessons that Dan Pallotta teaches is that the obsession with low overhead costs is unsustainable and actually hinders the ability of non-profits to achieve their goals. He points out that donors are often more concerned with how much of their money is going directly to the cause, rather than how much is being spent on overhead costs like salaries, marketing, and fundraising.

However, Pallotta argues that this mindset is misguided and can actually be harmful to non-profits. He says, "The next time you're looking at a charity, don't ask about the rate of their overhead. Ask about the scale of their dreams and how they're going to get there."

Pallotta also emphasizes the importance of investing in non-profit organizations so that they can achieve their long-term goals. He notes that for-profit companies are willing to invest heavily in marketing and advertising because they understand that it is necessary for long-term success. Non-profits, on the other hand, are often criticized for spending money on marketing and fundraising, even though these activities are crucial for achieving their goals.

In his book, "Uncharitable: How Restraints on Nonprofits Undermine Their Potential," Pallotta writes, "When people ask me, 'How much of my donation goes to the cause and how much goes to overhead?' I tell them, 'It all goes to overhead.' Because, in reality, all of the money that is spent on the cause is overhead - it's the cost of doing business. The only way to ensure that there is no overhead is to have no staff, no office, and no supplies - and in that case, there would be no way to carry out the mission."

Pallotta's message is clear: non-profit organizations need to be able to invest in themselves and their goals in order to achieve real change. The obsession with low overhead costs is a short-sighted approach that ultimately limits the impact that non-profits can have on the world.

IDan Pallotta's lessons on the importance of investing in non-profit organizations and changing the way we think about overhead costs are valuable and insightful. As donors and supporters, we need to focus on the scale of non-profit organizations' dreams and their long-term potential for impact, rather than fixating on short-term cost-cutting measures. By adopting a new approach to non-profit management, we can create a world where organizations have the resources they need to achieve their goals and make a real difference in the world.

It’s been our experience in leading charities overheads are not the sign of a good charity, yes we need to be diligent but we also need to be sustainable