Contrary to what you may think, overhead in a non-profit is intrinsically bad. It's a sign of a functional, well-run organization. Why? Fundraising to cover yo

Contrary to what you may think, overhead in a non-profit is intrinsically bad. It's a sign of a functional, well-run organization. Why? Fundraising to cover your overhead costs when you're small is relatively easy but comes increasing harder year after year as you grow. The reason most non-profits take a portion of donations for overhead costs is so that they can keep the lights on and (hopefully) become better at providing their services more efficiently. Moderate overhead percentages are not a bad thing for non-profits. As a donor you should want the organization that you're supporting to have a way to pay their bills, investing in productivity improvements, and build scale. I applaud Watsi's commitment to passing 100% of donations onto patients and I'm cheering them on to find a sustainable funding model over the long run.