141: Justice for the 8 Cents! | How to Communicate Nonprofit “Overhead” Expenses

Nonprofits – how do YOU communicate about the dreaded “overhead” expenses? You know that pie chart everyone uses to show how much money goes directly to programs? Yeah, I want to toss it out the window. We’ll talk about why those “eight cents” on the dollar that cover essential administrative expenses are not wasted but actually crucial for keeping your nonprofit running smoothly.

In this episode, we’re tackling a nonprofit pro’s question about updating an employee handbook. Should you hire a pro bono lawyer who DOESN’T do employment law or invest in an HR expert? Spoiler alert: Your uncle Larry, the PI lawyer, might not be the best fit here. It’s all about making smart investments in your nonprofit’s operations and HR to avoid headaches down the line. Trust me, you’ll thank yourself later when you don’t end up in a legal pickle.

So, grab your headphones and join us for a lively chat about transforming how nonprofits communicate their spending to donors. We promise some laughs, a few rants, and a whole lot of practical advice. And remember, it’s okay to spend money on things that keep your nonprofit running well! Let’s rethink the way we tell our financial stories and embrace the true costs of running an amazing organization.

In this episode, you will hear:

• Why you need to delete that outdated nonprofit overhead pie chart
• Whether pro bono is the right way to go with your employment law needs
• Some of our recommendations for tools to keep up with all the changing HR rules
• The real relationship between the back-office and your direct mission programming
• How you can REALLY communicate success to your donors
• What your fiduciary duties really have to do with all our worries about “overhead”

Resources from this Episode

Propel Article – A Graphic Re-Visioning of Nonprofit Overhead: https://propelnonprofits.org/blog/a-graphic-re-visioning-of-nonprofit-overhead/

The Five Whys: https://en.wikipedia.org/wiki/Five_whys

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