Guidestar CEO, Jacob Harold, published a letter condemning the use of administrative expenses as a measure of nonprofit performance. You can read the entire message at www.overheadmyth.com.

The letter was co-signed by Art Taylor, president and CEO of BBB Wise Giving Alliance, and Ken Berger, president and CEO of Charity Navigator—making it the first time the three leading nonprofit information providers joined together to share the same message: the percentage of a charity’s expenses that go to administrative costs, the “overhead” ratio, is not appropriate to consider when determining if the nonprofit is effective or efficient.

You can get involved!

For nonprofits: visit www.overheadmyth.com to print the letter, and include it in your postal mailing to supporters. Include a summary and link on your web site, your blog, on your Facebook page, on Twitter, and in any email newsletters.

Publicly commit to ending the focus on overhead by signing the pledge at www.overheadmyth.com.

Spread the word about the Overhead Myth campaign to your own networks online. Guidestar has created a communications and social media tool kit with turn-key content that you’re welcome to use: www.overheadmyth.com/press. But don’t just send out canned messages – say why you are particularly interested in this campaign.

Get your supporters, including volunteers, involved. Encourage them to share info about the campaign via their social media networks, and to blog about it, as well.

Nonprofits: Share your data and information with Guidestar. “We need nonprofit leaders to provide more public information about their missions, programs, and results so we can move past the overhead ratio once and for all. Our GuideStar Exchange program allows nonprofits to share data with stakeholders for free!”

And here’s the freaky part: I whined about the misplaced focus on overhead costs at nonprofits just a few hours ago on TechSoup.

This is an issue that’s very near and dear to me.

Also see: Survival Strategies for Nonprofits , a guide for nonprofits facing critical budget shortfalls.