GuideStar’s new effort is laudable; but could be flawed.
GuideStar has announced the coming availability of a new level of participation for nonprofits, something called the Platinum Level. The intention behind it, the creation of a tool to bust the Overhead Myth, is laudable. For too long, the notion has dogged the sector that anything a charity spends beyond “program expenses,” assumed by most people to be direct benefits for clients, was bad. This led to numerous artificial and harmful practices as charities contorted themselves, their reporting, and their budgets to appear to spend the overwhelming proportion of their dollars on client benefit. Somehow, the idea grew that charities neither needed to nor should spend anything on equipment, competitive salaries, training, networking, or the many other things that can contribute to a successful organization. It is notable that GuideStar…