The Icky Sticky Overheard Conversations

Last week, we shared why “low overhead” is not shorthand for “good nonprofit.” Running effective programs requires thoughtful investment in the people, systems, and infrastructure that make the mission possible. 

Still, when a donor asks about administrative or fundraising costs, it can feel uncomfortable. 

Their questions aren’t unreasonable. As we said last week, donors care deeply about impact, and they want to know that their generous support is being used wisely. 

That means fundraisers need to be prepared to respond with kindness, transparency, and confidence. These conversations may feel a little icky and sticky, but handled thoughtfully, they can also strengthen trust. 

Donors deserve a real conversation 

What happens when a donor is concerned about something they saw in a financial report? Our instinct may be to defer, deflect, defend or overwhelm them with numbers. 

Instead, we recommend slowing down and being curious. 

Here’s one idea about how this could go: 

“Thank you for sharing that you’re upset. Would it be okay if I shared a little more context about how we think about those expenses?” 

Permission matters. It communicates respect and turns a potentially defensive moment into a conversation. 

If they’re open to it, speak plainly. Something like:  

“We believe strong leadership and experienced employees help protect and advance our mission. We have competitive salaries because we want to attract talented leaders, reduce costly turnover, and maintain the continuity that our programs and communities depend on.” 

You could also add: 

“We’re grateful that several members of our leadership team have served here for many years. That longevity brings experience, trusted relationships, and stability. We celebrate it because it helps us serve people more effectively.” 

The goal isn’t to convince the donor that every expense is automatically justified. 

The goal is to provide context, reframe the expense as an investment in mission impact, and answer their question transparently. 

You can also end with thanking the donor for trusting you with the conversation, and for their past support. 

“Thank you so much for being willing to talk with me about your concern.  I’m grateful you’ve partnered with us over the years and for your support of our mission.” 

These are conversations worth having, if the donor is open to it.   

Because when donors understand how an organization’s people, systems, and infrastructure contribute to long-term impact, overhead becomes less of a lightning rod. It becomes part of the story. 

One more note – what if the donor is not up for the conversation? Celebrate them. Celebrate all they’ve done to advance your mission to date, and let them know you’ll always remain available should they decide to come back and support your mission again.