3min chapter

80,000 Hours Podcast cover image

#124 – Karen Levy on fads and misaligned incentives in global development, and scaling deworming to reach hundreds of millions

80,000 Hours Podcast

CHAPTER

Fundraising Based on an Overhead Rate?

An overhead rate is a tax, all right? It's a flat rate. So it doesn't matter if that rate is seven % or 17% or 27%. As the leader of an n g o, the way that you fund your corps costs is by being bigger and so i think this really creates some sub optimal decision making on the part of antio leaders who they have to keep the lights on. If you are funding your corps operations by taking a percentage of the money that you spend on charitable aims, well, then your goal is to be spending more and more on charitable aims,. And that's not always consistent with what's best in terms of impact.

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