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GuideStar Blog

Kjerstin Erickson

Recent Posts by Kjerstin Erickson:

Update on the Overhead Myth Campaign

In mid-June, our CEO, Jacob Harold partnered with Charity Navigator and the BBB Wise Giving Alliance to pen an open letter to the donors of America denouncing the "overhead ratio" as a valid indicator of nonprofit performance. The letter and accompanying campaign marked the first time in history that the leaders of the country's three leading sources of information on nonprofits had spoken clearly with one voice: overhead is necessary to nonprofit success.

So far, more than 2,300 people have signed the pledge to end the Overhead Myth. The comments we've received have only affirmed our conviction. For example:

I am a professional that works exclusively with nonprofits, and I absolutely agree that the emphasis on overhead leads to a lack of investment in the business of being a nonprofit that seriously jeopardizes long-term performance and fulfillment of the charity's mission.

—Christa Divis, CPA, MBA

It's about time. The story you shared is being played out again and again by hundreds of nonprofits setting themselves up for failure. Like any industry aiming for long-term sustainable success, International Development needs systems, tools, HR, and general infrastructure, all of which require appropriate investments.

—Paula MacKinnon

Thanks for your leadership in making it clear that overhead ratios are not a way to assess the effectiveness of nonprofits. The field has unfortunately allowed overhead to become a proxy for understanding how well a nonprofit is managed. As we move away from using overhead numbers, let's focus even more rigorously to understand what factors truly matter for nonprofit effectiveness—and how funders can help!

—Mario Morino

Of course, some people have also raised concerns—especially around fundraising expenses. The detractors have a point: an established charity that devotes most of its expenses to fundraising should be carefully scrutinized. We addressed this question in more detail on our blog.

Ultimately, the overhead ratio doesn't get at what really matters when you're evaluating a charity: how well it accomplishes it mission. Impact is what really matters. We at GuideStar are working hard to bring you more and better information about nonprofit impact and success. Between the GuideStar Exchange, Great Nonprofits stakeholder reviews, and Philanthropedia expert recommendations, we are giving you the tools to make better philanthropic choices.

It's not too late to take part in the campaign. Please visit www.overheadmyth.com to sign the pledge and spread the word.

Kjerstin Erickson
© 2013, GuideStar USA, Inc.

Kjerstin Erickson is a special projects fellow at GuideStar who is about to leave us for the adventures of graduate school. We send her off with our thanks and best wishes for continued success.


All Overhead is Not Created Equal: Distinguishing Fundraising and Administrative Expenses in Nonprofit Evaluation


Nonprofit Emaciation: Confessions of a Do-Gooder Who Starved an Organization

My name is Kjerstin, and I used to run an international nonprofit organization. A pretty great one, at that: my organization, FORGE, helped more than 70,000 refugees in war-torn Africa recover from conflict and prepare for a peaceful and self-sufficient future. In refugee camps across Zambia and Botswana, we built libraries, created computer training centers, provided micro-finance and agricultural finance, started preschools, ran health education programs, and more. In short, we helped refugees determine not only what they needed but how they could build it for themselves. No one else was doing what we did, and we could squeeze more out more out of our money than a souvenir penny press.


Good Data for #GoodJobs

Kjerstin Erickson