The Agitator/DonorVoice

The Case for More Overhead, Reserves, and Yes, Debt

The article argues that charities should deliberately increase overhead, maintain larger reserves, limit revenue diversification, and even use debt to boost long‑term program spending. A 30‑year study of roughly 130,000 nonprofits shows higher overhead yields about 15% more program spend, focused revenue streams add 17%, sizable reserves generate 32%, and moderate debt contributes 11% over ten years. Conventional rating agencies reward lean balance sheets, but that model can stifle growth and impact. Kevin urges the sector to prioritize outcomes over optics.