What is overhead?

Overhead refers to the amount of money a charity spends on administrative and fund raising expenses. It is typically listed as a percentage of overall expenses; in CFC materials, this percentage is shown as AFR. Overhead includes costs such as (but not limited to):

-Location, rent, or facilities expenses

-Logistics related to mission scope

-IT infrastructure, products, and security

-Accounting and auditing

-Marketing, advertising, and events

-Salaries for staff

Many factors influence overhead, so it recommended that donors consider the unique context and overall picture of a charitable organization while analyzing the AFR value. Donors are able to research the overhead for charities and federations through the Charity Search tool. Please consult the following FAQ for information on CFCNCA’s overhead: What is CFCNCA’s overhead?

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