General Operating Support and Impact

There’s an interesting discussion going on over at Tactical Philanthropy about, overhead, general operating support, and donor choice about “where the money goes.” These are all topics we’re familiar with here at United Way. What struck me in reading it was how some nonprofit information sites like Guidestar play into the illusions that

a) overhead is bad, and

b) that donors re interested in micromanaging how their gifts are used.

I think that what donors are really interested in is the results their gifts achieve, communicated in accessible and compelling ways. If they don’t have that, they resort to lesser proxies like overhead rates, etc. Our new investment strategy, which combines general operating support with accountability for results, goes a long way toward putting the focus where it belongs. If you want to see my post, look here.