Paying for Overhead: A Study of the Impact of Foundations’ Overhead Payment Policies on Educational and Human Service Organizations

Abstract

This paper examines the impact of foundations’ overhead funding policies on educational and human services organizations. Data was collected from two original surveys, one of foundations and one of educational and human services organizations, and from six case studies. The results of this study found that most foundations fund nonprofits’ overhead expenses, mostly within program grants. Large foundations and those that fund locally were statistically more likely than smaller foundations or those that grant nationwide to fund nonprofits’ overhead expenses, controlling for other factors.