Uncharitable: Dispelling the Overhead Myth

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Armstrong McGuire
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Wednesday, May 22, 2024

Uncharitable: Dispelling the Overhead Myth

“The clearest and most articulate critique I have read of the system of values that our charities and other nonprofit organizations are supposed to follow… explains in graphic detail how these values undercut what charities are trying to do and prevent them from accomplishing all that they might. Not everyone may agree with [this] position, but the nonprofit world will surely benefit from a vigorous discussion of [these] arguments.”

— Derek Bok, Former President, Harvard University

We could not agree more with Mr. Bok. Our goal in promoting the Uncharitable documentary and book among nonprofit leaders, board members and funders is conversation. The nonprofit sector is not as strong as it could be because it has not had the autonomy to make strategic investments that will better position it to solve our greatest community challenges.

We don't claim to have the answers, but we are fully committed to leading and engaging the conversation. We hope you will continue to speak in. Here is what some leaders and funders had to say about Uncharitable and dispelling the Overhead Myth.

What was your biggest take away from the documentary?

That we can dream big as a sector and that the laws and cultural norms surrounding nonprofits need to change. Jordan Bowman, Executive Director Journeymen Triangle.

We have to talk about - and share with donors - about the need to invest in our infrastructure to amplify our impact as social impact organizations. We have to normalize investment in infrastructure as the catalyst for better outcomes for all of us. Sharon Hirsch, President and CEO Positive Childhood Alliance.

That the conversation about overhead is growing. I saw the Ted talk years ago and found it to be very compelling but have heard little conversation about it since. It’s shocking to me how little investment nonprofits are encouraged to make in their operations. Ashley Campbell, Executive Director Legal Aid of North Carolina.

What is the most important action nonprofit leaders can take in response to the documentary?

To challenge our board, donors and other stakeholders to rethink this perception and consider alternate approaches to measuring success and effectiveness. L. Ron Pringle, President and CEO, Inter-Faith Food Shuttle.

We must change grant making and grant seeking practices to make the case for more general operating funding. Nonprofits should push...and funders should shift.  Kellan Moore, President and CEO John Rex Endowment.

What is the most important action nonprofit board members can take in response to the documentary?

Go all in for your organization. First, do no harm by becoming an apologist to donors or others for strategic investments your organization makes in its infrastructure and talent. Second, be a champion for them, letting others know what can be accomplished with the right support. Third, help engage your chief executive and top professional talent with your peer groups - elevate their expertise and ideas in the community. Bert Armstrong, Co-founding Partner Armstrong McGuire.

Think more about investing in nonprofit capital and organizational capacity during the budget process. Craig Stephenson, CEO COC Properties.

What is the key to dispelling the overhead myth?

Having a critical mass of leaders willing to stand against it in word and deed. David Chatham, Senior Client Success Manager, Angel Oak Creative.

It has been an ongoing battle for years and every once in a while something like Uncharitable moves the needle a bit. Foundations need to continue to give capacity grants and cover the true operating costs of programs. April Anthony, Senior Advisor Armstrong McGuire.

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Want to join the conversation or have an idea about dispelling the Overhead Myth. We would love to hear from you. Please reach out to Managing Director Shannon Williams.

If you serve on a nonprofit board member or funder that supports nonprofits join us for our next FREE screening of Uncharitable at the Marbles iMax Theater in Raleigh, NC on Wednesday, June 12 from 5-7 pm. Seats are going fast! Reserve your spot here. A nonprofit will be randomly chosen to receive $2500 at the screening. Your nonprofit could be the one!

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