Getting the Overhead Myth Out of Our Heads -- And Out of Nonprofit Ratings (Guest: Michael Thatcher, Charity Navigator)

In this episode, you’ll learn how nonprofits are really rated—and why the sector’s obsession with overhead could finally be ending. Charity Navigator CEO Michael Thatcher joins host Rusty Stahl to explain how nonprofit ratings are shifting toward impact, leadership, and organizational health—and why investing in people matters more than lean budgets. In a candid moment, Thatcher hints at a future where overhead is no longer part of Charity Navigator’s ratings formula, signaling a potentially major change in how nonprofits are judged. Listen in, spread the word, and become part of the shift.Download the episode transcriptGuest Bio:Michael leads Charity Navigator in its efforts to make impactful philanthropy easier for all by increasing the breadth and depth of evaluation methodologies to facilitate ratings coverage of substantially larger numbers of charities and expand how the information engages new and existing audiences. Prior to joining Charity Navigator Michael spent more than fifteen years with Microsoft, the last ten of which, as their Public-Sector Chief Technology Officer responsible for technology policy initiatives and engagements with governments and academic leaders in Asia, the Middle-East and Africa. Michael's eclectic background includes years at sea conducting oceanographic research with Woods Hole Oceanographic Institution, composing music and dancing internationally as the co-founder and co-director of Dance Music Light. He has held various board positions within the nonprofit and tech sector, holds several patents in enterprise systems management and has a degree in Music from Columbia University in New York.Links to Resources:Organizations & WebsitesCharity Navigator — ⁠https://www.charitynavigator.org⁠Charity Navigator Nonprofit Portal (Claim Your Profile / Submit Data) — ⁠https://www.charitynavigator.org/portal⁠Fund the People — ⁠https://fundthepeople.org⁠Fund the People Podcast — https://apple.co/3iDT21T ⁠Fund the People Podcast Premium on Patreon — ⁠https://www.patreon.com/fundthepeople⁠Candid (formerly GuideStar & Foundation Center) — ⁠https://candid.org⁠BBB Wise Giving Alliance — ⁠https://www.give.org⁠Overhead Myth Open Letter to America’s Donors from FTP’s research archives (2013) — https://drive.google.com/file/d/0BwddBi7Cib_xMHpyRXd6WGpFREU/view?usp=sharing&resourcekey=0-ZFQ-F9JdQ0v3O1buOgFhXQ Overhead Myth Letter to America’s Nonprofits from FTP’s research archive (2014) — https://drive.google.com/file/d/0BwddBi7Cib_xcy0wbEhmRGJtZUU/view?usp=sharing&resourcekey=0-N9yoZdjKvoRuPX-SDTZwtwFunding for Real Change (resource-rich website based on BDO’s research on improving funding for indirect costs) — ⁠https://www.fundingforrealchange.com/ Concepts, Research & Sector InitiativesMacArthur Foundation — ⁠https://www.macfound.org⁠Staff Operating Support article in The Nonprofit Quarterly - by Rusty Stahl (Fund the People) — ⁠ https://bit.ly/NonprofitsNeedSOSPodcasts ReferencedFund the People Podcast brief bonus episode announcing the Staff Operating Support (SOS) funding concept — ⁠https://podcasts.apple.com/us/podcast/introducing-staff-operating-support-s-o-s-grants-concept/id1531813289?i=1000735122772Fund the People Podcast episode featuring John Palfrey (CEO of MacArthur Foundation) — https://podcasts.apple.com/us/podcast/macarthur-president-chooses-courage-not-quiet/id1531813289?i=1000712429747 NGO Soul + Strategy Podcast episode featuring Michael Thatcher — https://podcasts.apple.com/us/podcast/051-charity-navigators-changing-expectations-and-its/id1498390711?i=1000598151900Thinkers & Influential Voices MentionedDan Pallotta — ⁠https://danpallotta.com⁠ Simon Sinek — ⁠https://simonsinek.com⁠LinkedIn — ⁠https://www.linkedin.com/company/charity-navigator⁠Instagram — ⁠https://www.instagram.com/charitynavigator ⁠Facebook — ⁠https://www.facebook.com/CharityNavigator⁠ X (Twitter) — ⁠https://x.com/charitynav⁠Tik Tok — ⁠https://www.tiktok.com/@charitynavigator⁠