Why NOT to use overhead ratios as a way to compare NGOs

29/03/2012 at 2:16 pm 3 comments

We in Dóchas are very keen to promote Good NGOs, and to discourage funders to keep supporting Bad NGOs.

And in doing so, we obviously need to have clear standards of what a “Good NGO” is. And that is not easy. But we are working on that!

For starters, have a look at these resources:

But the list is longer than this. Please bear with us while we develop it further.

In the mean time, however, we thought that it would be helpful if we tell you how NOT to judge an NGO.

One of the most widely used criteria to assess NGOs is their overheads ratio: the percentage of the organisation’s income that is used on administration, salaries and other “overhead” costs.

We hope that, when you have read the articles below, you will agree: OVERHEAD COSTS ARE NOT A GOOD WAY TO JUDGE THE QUALITY OF A NOT-FOR-PROFIT ORGANISATION.

The Overheads Myth

Have a look for yourself:

Also have a look at this article, called “The Non-Profit Starvation Cycle

And finally, this article: Might it be time to stop talking about NGO administration costs?

What do YOU think?

How can ordinary people know which NGO is best?

Please let us have your views by leaving a comment below.

;

Entry filed under: NGOs. Tags: , , , , , , , , , , , , , , , , , , .

How do we communicate global poverty? Might it be time to stop talking about NGO Administration Costs?

3 Comments Add your own

  • […] Why NOT to use overheads ratios as a way to compare NGOs (March 2010) […]

    Reply
  • 2. Robbie Gilligan  |  06/01/2014 at 1:32 pm

    It depends on the context to some extent. But here are a few suggestions: accountability to service users; appointing people with service user experience to Boards; external review processes; demonstrating compliance with international conventions, best practice models etc

    Reply
  • 3. Bakoena Chele  |  23/01/2014 at 11:01 am

    Good NGOs are those that rate high in the folowing: Governance; Management Practices; Human Resource Management; Financial Resource Management; External Relations; And in Sustainability!

    Reply

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Trackback this post  |  Subscribe to the comments via RSS Feed


Enter your email address to subscribe to this blog and receive notifications of new posts by email.

Join 210 other followers

Archives

Dóchas on Twitter

The World's Best News - images

Well done, @ugaasadda "One Woman Challenges Perceptions of Somalia One Instagram Post at a Time"

Read more: http://globalvoicesonline.org/2015/02/22/one-woman-challenges-perceptions-of-somalia-one-instagram-post-at-a-time/ How a peaceful movement 
changed a violent country.

BBC: http://www.bbc.com/news/blogs-trending-32882520 How a peaceful movement 
changed a violent country.

BBC: http://www.bbc.com/news/blogs-trending-32882520 "Normally, a city is for people not vehicles. We want to turn Kigali into a pedestrian-friendly city." #Rwanda is rolling out a new strategy to boost public transport and improve its cities. 
Read more at http://allafrica.com/stories/201508250223.html Faced with drought , Tanzanian farmers plant MORE trees to protect their food crops.

Read more: http://www.scidev.net/global/farming/multimedia/tanzanian-farmer-brings-forest-back-to-life.html?utm_content=buffer5af8c&utm_medium=social&utm_source=twitter.com&utm_campaign=buffer As part of a project called "The Tribal Voice", the Guarani and Yanomami peoples of South America have received waterproof phones and solar panels to give them more say in political and economic developments affecting their land. "We believe that the powerful videos we are seeing will galvanise more action by more people and create pressure governments will be unable to ignore.” Read more at: http://www.scidev.net/global/indigenous/news/tribal-groups-indigenous-people-survival-struggle.html#sthash.ZM4JnKKq.dpuf On September 17th hundreds of volunteers around the country will mobilise to spread the positive news of development!

They will be handing out "the World's Best News newspaper" and joining in other activities nationwide. 
We would love to have you on board! 
If you would like to be involved in the distribution/ activities on the day please register here: 
https://www.eventbrite.ie/e/get-involved-with-the-worlds-best-news-2015-tickets-17920797588 Data published by the UN show that the number of people living in extreme poverty has been cut from 1.9 billion to 836 million.

Read more: https://agenda.weforum.org/2015/07/how-much-global-poverty-fallen-past-25-years/ Unlike other slums in #Mexico, Las Palmitas district of Pachuca is a rainbow of colours. The area is not just prettier, but also a safer place to live.

Read more: http://www.theguardian.com/world/2015/aug/01/mexico-pachuca-mural-las-palmitas-public-art - Photo: Sofia Jaramillo/AP The world's fastest growing economies:

Half of the countries in this list of 13 booming economies are in Africa: 
http://worldsbestnews.tumblr.com/post/125151379280/the-13-fastest-growing-economies-in-the-world #positivenews The first #malaria vaccine has received the green light from European regulators, opening the door for vaccination campaigns for infants in #Africa.

Malaria is a disease of poverty. It affects poor people disproportionately, and it fuels poverty, as it slows economic growth and worsens other disease burdens, particular HIV and Aids.

But there is good news: The number of malaria deaths has almost halved since 2002, and now a new malaria vaccine has been approved, which should help protect very young #children against the disease.

Read this article: http://www.scidev.net/global/malaria/news/malaria-vaccine-green-light-mosquirix.html?utm_content=buffer1ea54&utm_medium=social&utm_source=twitter.com&utm_campaign=buffer

Also read: http://www.thejournal.ie/readme/malaria-treatment-vaccine-research-1428826-Apr2014/

Visitors Map

Map

Dóchas Photos

1506_77

1506_76

More Photos

Follow

Get every new post delivered to your Inbox.

Join 210 other followers

%d bloggers like this: