On Overhead and Ethical High Horses

By Donna Stokes

October 3, 2019

Last Updated: May 21, 2010


Dan Pallotta's Harvard Business Review blog posted this week turns conflict of interest on its head.

Pallotta, author of the book Uncharitable, writes regularly about how an emphasis created by watchdogs on keeping overhead costs low is often counter to the effectiveness of nonprofit work. In the blog, he ponders questions like "What if a nonprofit board feels pressure from the media and watchdog agencies to reduce overhead, but it knows that doing so will inhibit the organization's progress and ultimately undermine donor intent? Then the board of directors has a conflict of interest."

Few things get people on their ethical high horses faster than conflicts of interest, he says. So check out his arguments and see what you think.

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