The Overhead Costs Study

1
The Overhead Costs Study

• Joint project with the Indiana University Center
  on Philanthropy
• Learning about Nonprofit Cost Reporting from
• Forms 990
• Independent Survey data
• Case studies

2
Analysis of Discrepancies between Form 990,
Survey, and Reporting Rules

• Cost tracking and reporting is not a strength of
  many nonprofit organizations.
• Zero cost fundraising is pervasive and is at
  least partly explained by misreporting.
• Rules on proposal writing, joint cost,
  professional fundraising, and other expenses
  are misunderstood.

3
Discrepancies... Opportunities for dissemination

• Presentation to Association of Fundraising
  Professionals
• Article in Nonprofit Quarterly
• Article in New Directions for Philanthropic
  Fundraising
• Presentation at ARNOVA conference
• Presentation to American Accounting Assn

4
Substantive analysis of administrative expenses

• Larger organizations report lower proportions of
  management/general expenses
• Nonprofits with government revenues have higher
  management/general expenses.
• Overall, fundraising costs average 0.24 per
  dollar raised.
• One in six human service nonprofits spends more
  than 35 of budget on non-program expenses.

5
Administrative expensesOpportunities for
dissemination

• Article in Nonprofit Quarterly
• Presentation at ARNOVA conference
• Presentation at Alliance of Nonprofit Management
  conference
• Presentation to AFP Research Council
• Subject of AAFRC Giving USA Update

6
Fundraising Institutional arrangements

• Most nonprofits do not have a full-time
  fundraising staff person.
• Organizations with a fundraising staffer have
  more fundraising involvement from executives,
  other staff, and volunteers.
• Over half of nonprofits with no fundraising
  staff receive contributions from a federated
  campaign or other support organization.

7
How fundraising gets doneOpportunities for
dissemination

• Article in International Journal of Nonprofit
  and Voluntary Sector Marketing
• Presentation to Association of Fundraising
  Professionals
• Presentation at ARNOVA

8
Pending Activities

• Press release.
• Series of short briefs on substantive topics
  addressed thus far.
• www.CostStudy.org website.
• Additional substantive analysis based on case
  studies.
• Brief sourcebook aimed at accountants.