As a teenager, my Grandpa Sidney Musher told me his goal as chairman of PEF, an early donor-advised fund (DAF), was to keep the overhead to 1.5%. He accomplished this by utilizing some of the business characteristics of a DAF, which earns income based on funds being held. For the last 25 years, I have worked with investors to maximize ROI on invested capital in private companies. With the benefit of this experience across sectors, including social services, I have come to appreciate the wide range of business models required of both for-profits and nonprofits to meet various societal needs, and how 1.5% is unrealistic for any nonprofit overhead, and probably tight for a DAF these days too.
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