Unpacking the nonprofit overhead myth with Susan Kahan

8/21/20203

Donors feel, I want my money going to the cause...But let’s take an example of an organization. Let’s say you have a shelter that helps people who have been affected by homelessness... I care about this issue. I see it in my community. I wanna do something about it. I’m gonna donate to this shelter. Okay, well not all that money’s gonna go into housing. Some of the money’s going to go to paying for marketing the services...What does that mean? That needs to go to paying for the salaries if you don’t have the people paid to be there. Then you don’t have a shelter. Having a website. Websites cost money. You need to pay for these things.
— Susan Kahan

In this podcast episode, Carol Hamilton and Susan Kahan discuss the importance of donor trust and nonprofit accountability. They challenge misconceptions about nonprofit fundraising, such as the focus on overhead costs and the belief that it is a necessary evil. They argue for reframing negative attitudes towards fundraising in order to build confidence.

The conversation also addresses the "overhead myth" in the nonprofit sector and emphasizes the need to invest in staff and create a healthy organizational culture. They discuss the challenges of asking for larger donations and stress the value of building relationships and learning from others in the field.

​They also highlight the importance of building a culture of philanthropy within nonprofit organizations and using donor feedback to improve programs. Overall, the conversation emphasizes the need for effective fundraising strategies and the importance of transparency and accountability.​

Episode Outline:

(00:00:01) Donor Trust and Nonprofit Accountability
(00:06:05) The Overhead Myth
(00:12:19) Building Confidence in Fundraising
(00:18:07) Building Relationships in Fundraising
(00:24:13) Building a Culture of Philanthropy
(00:30:47) The Challenges of Nonprofit Fundraising

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