Giving Compass' Take:

• This eJewish Philanthropy post lists observations about the "overhead myth" in philanthropy and why donors need to look at it more as funding "infrastructure."

• That doesn't mean due diligence isn't required — conduct thorough research into each organization for which you're considering a major gift, especially around events such as Giving Tuesday. 

• Still looking for help? Try out our free personal donations manager, Giving Planner.

“Overhead” is a very problematic and misleading term. It implies that there are costs totally unrelated to the project. I prefer the term “infrastructure.” The term makes it clear that no project or program exists independent of the organizational context in which it sits. Someone has to turn on the lights, clean the floors, hire and supervise the staff, account for the finances, and so much more. Most [but not all] of us on the funder side know this and fully recognize that it is counterproductive to fund a program without assuring its likelihood of success. That requires support for the infrastructure ...

Those of us in the field know that, a few years ago, the primary rating organizations issued their own mea culpa on this. They realized that they had done an inadequate job of conveying what questions should be addressed before looking at fundraising ratios and, to their credit, and to our field’s benefit, they have worked hard since to make sure that the now readily available financial data is only one important indicator of the value and worth of a project or organization ...

All of this is particularly important as we approach “Giving Tuesday” and end of the year solicitations. There are many wonderful and deserving causes out there, and, sad to say, some who are, to put it kindly, phonies. One should ask questions before writing that check or using that credit card. Make sure the organization you want to fund is legitimate and is not one that just sounds like one that is.

Read the full article about considering overhead and Giving Tuesday by Richard Marker at eJewish Philanthropy.