After pausing to reflect on our gratitude on Thanksgiving and beginning the holiday buying season with zeal on Black Friday, December 3 is an opportunity to give to others by participating in #GivingTuesday.

Show your support of organizations solving problems in your community and people in need by making a gift on December 3 – known as #GivingTuesday– to nonprofit organizations having a positive impact. Nonprofits rely heavily on end-of-the-year contributions to support their work, and your generosity enables them to continue having an impact in their communities by serving clients and building strong organizations.

As you consider which organizations to support, there are many sources of information you can and should use to make a smart gift: review their website, their statements of impact and outcomes, their financial statements, and talk with their leaders. But don’t get caught in the trap of using the organization’s ‘overhead ratio’ (also known as their administrative expenses or indirect costs) as the sole measure of an organization’s effectiveness. The costs lumped into ‘overhead’ include vital components of running an effective organization – including building and office costs, utility bills, evaluation, insurance, training for staff, and a multitude of other vital expenses to sustaining a strong, effective nonprofit.

Last year a community of practice comprised of nonprofit leaders and grantmakers at Donors Forum created a short video that helps to explain the overhead challenge.

Please take two minutes to watch this video to learn more about how your funding can help change the world and then share it with others in your network. 

Make a gift that really will help change the world on #GivingTuesday!

 ~Laura Zumdahl, Vice President, Nonprofit Services, Donors Forum