What is a standard overhead rate for charities??
According to the Better Business Bureau Wise Giving Alliance’s Standards for Charity Accountability, charities should keep their overhead rate at 35% or lower. Traditionally, Room to Read has operated at 1/3 of that rate – something that we are very proud of! And despite the increase in our overhead ratio to greater than 10% in the past few years (2006-2008), we pledge to continue to scrutinize every area of our business to keep our overhead expense well below the industry standard and to spend your money efficiently.
