Donations and the Overhead Ratio Are Related Even When Donors Do Not Bother About Efficiency

Nonprofit and Voluntary Sector Quarterly, Ahead of Print. Empirical research on donor behavior infers from donations being negatively related to overhead ratios (or indicators based on these ratios) that donors give more to more “efficient” organizations. This relation is proved to be at least partly driven by a purely mechanical link between donations and overhead ratios, which therefore should be isolated when studying empirically the behavioral effect of overhead ratio–based indicators on donors’ giving decisions.

Nonprofit and Voluntary Sector Quarterly |  

Goto full post >>