What we measure matters, and we don’t always measure the more impactful things. In today’s episode, Dr. Thad Calabrese of NYU Wagner explains how destructive tracking overhead ratios can be to nonprofits, and how the sector is starting to move towards impact evaluation. More funders are looking to spend dollars based on outcomes achieved, rather than simply the proportion of funding that’s spent on programs as currently required by accounting standards and the IRS. I. In order to define this, we need to define what our outcomes even are, then find ways of tracking our progress towards those outcomes – which is not a simple task. 

Dr. Thad Calabrese studies public and nonprofit financial management, broadly focusing on the management and governance of public and not-for-profit organizations, as well as the institutions that affect managerial decision-making in these entities. His research has appeared numerous journals, textbooks, and other publications. Thad was awarded the Editors’ Prize for Best Scholarly Paper in Nonprofit Management & Leadership for 2013. Prior to academia, Thad worked in the New York City Office of Management and Budget in tax policy and also as a financial consultant working with nonprofit organizations in New York City.

Find and follow Thad on LinkedIn!

One thing you can do right now:
One thing you can do right now:

Stop reporting your overhead ratio. Just say no. Instead, work towards defining your success by what you achieve towards your mission. Check out this article for some inspiration.



Comments are closed