Nonprofits: good apples

My former colleague Liz Towne at Alliance for Justice wrote an excellent letter published in today's Washington Post. A recent rule change at the OPM drops the 25% administration cost cap to qualify for charity programs run by the feds. This is a good idea... frankly, as Liz notes in her letter, setting an arbitrary administrative cost percentage that suggests one type of charity is efficient and another is not is a poor method to measure effectiveness. There are a host of other factors that contribute to efficiency and efficacy, including the size of the organization and the services it provides. There are better ways to measure these things, and administrative costs should be a part, not the sole method to make the determination.

Check out the letter here.