If you’re a shareholder in a company, you probably want that business to run as efficiently as possible. Lately it’s gotten easier to apply that mentality to nonprofit charities, too, with online rating sites that score charities on how much of your gift goes directly to the mission, and, in some cases, call out organizations with high overhead.
It sounds like a smart way to give, but Eric Walker says it’s a troubling trend.
“Wouldn’t that be a good thing if 99 cents of my dollar went to the soup in the soup kitchen?” Walker asked. “The problem is there's a whole bunch of work to put that soup in the pot and get it to the soup kitchen that there’s nobody to pay for.”