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New Documentary 'Uncharitable' Aims to Alter Perceptions of Nonprofit Overhead Costs

"Uncharitable" Highlights Pressure on Nonprofits to Minimize Operating Expenses at the Expense of Their Missions; Calls for Shift in Donor Focus from Cost Efficiency to Mission Impact.

  • The new documentary 'Uncharitable' directed by Stephen Gyllenhaal focuses on the nonprofit sector's struggle against the pressure to minimize their overhead costs decrying it as harmful to their missions.
  • The film tell the story of veteran advocate Dan Pallotta, who believes that the nonprofit organizations are unfairly urged to alleviate overhead costs, thus obstructing their capacity to fulfill their objectives.
  • Many charity rating agencies like GuideStar and Charity Navigator have contributed towards the increased pressure on nonprofits to cut their overhead costs by concentrating more on financial data.
  • A significant change has come about in Charity Navigator's methodology for rating nonprofits, shifting emphasis away from expenses towards the overall impact and effectiveness of a charity's work.
  • The debate continues between those who believe organizations should be extremely efficient, and those who argue that underfunding infrastructure and support services diminishes nonprofits' effectiveness.
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