Observations and Actions on Overhead: What I Learned from Grandpa Sidney

Observations and Actions on Overhead: What I Learned from Grandpa Sidney

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.

Click here to read the full article.

We'd like to hear from you Contact Stax