Operational Funding: Making the Case Without Apology

Hiding in the Shadows Is Not Beneficial – For Anyone

I remember having to design the annual reports for an organization I worked with many years ago. I always had the same request: “We need to make the graphics look like the administrative costs are smaller than the program costs. It’s a visual thing for the donors and funders.” I wondered if funders and donors were not actually looking at the numbers in details, but in my role, I never put two and two together. I did not understand that cutting down costs (or looking like were were) actually contributed to our own staff burnout, inefficient systems and overwork.

As I climbed the nonprofit ‘proverbial’ ladder with other organizations, my perspective changed.

I learned in my more senior and executive roles that when organizations are pressured to deliver transformational outcomes on shoestring budgets, the result isn’t more impact. When visibility efforts are seen as vanity rather than strategy, mission-driven work remains invisible to the very communities and funders it aims to serve. And when infrastructure is dismissed as overhead rather than seen as the engine that powers growth, sustainability becomes nearly impossible.

I have also seen organizations navigating through this tension day in and day out. They’re doing powerful, necessary work, but struggling to scale, retain talent, or tell their story. Why? Because they’ve been told that anything outside of direct service is excess. They’ve been taught subconsciously and indirectly to apologize for what it takes to operate well.

I think it the time to shift that narrative is long due and I really feel the time is now.

For decades, the term overhead has been wielded like a red flag, especially in nonprofit and mission-driven spaces. Some funders scrutinize it. Boards stress over it. Staff carry the weight of it. And in response, many organizations have internalized a belief: if your operations cost too much, you’re doing something wrong.

But here’s the problem with that logic: it’s both outdated and dangerous.

In this blog, I will unpack:

• Why underfunding operations is a systemic barrier to equity and effectiveness.
• How visibility is not a luxury, but a lever for sustainability.
• What it looks like to build smart infrastructure that honors your mission and energizes your growth.

Let’s stop asking how lean we can run and start asking how boldly we can lead.

The Overhead Myth Is a Trap and Here’s Why

The “overhead myth” refers to the widespread misconception that low administrative or operational costs are the primary indicator of a nonprofit’s effectiveness. But this belief is both wrong and it’s harmful.

The Problem with Prioritizing Already Lean Budgets

When organizations are forced to minimize overhead to meet funder expectations, several things happen:

• Critical infrastructure is neglected. This is because of outdated tech, under-supported staff, and ineffective systems. Once these become the norm, it creates a crumbly -> crumbling foundation.
• Staff capacity is overextended. Burnout isn’t a fluke, it’s a byproduct of systemic underinvestment. Especially, when an organization is small, staff capacity is detrimental – or when a large organization downsizes its workforce, the work still needs to be done by those who are still left on payroll.
• Innovation stalls. Without room to experiment or grow, organizations are often more reactive instead of being strategic. There is often a sense of putting out fires, until the next one comes up.

A study by the Bridgespan Group found that chronic underfunding of infrastructure leads to weakened organizational performance, even in high-performing nonprofits.

What That Lean Thinking Often Ignores

Professional development is not overhead. It’s capacity building.
Having staff go through different development programs is an investment. The learning and knowledge they bring back to the organization is priceless. It is also an opportunity for them to network with others in similar roles, share their experiences, and learn from others to problem solve and implement new ideas. I am a fierce proponent of professional development opportunities for my staff – and it doesn’t have to cost a fortune.

Marketing and communications are not “extra” – they’re visibility strategy.
This is such a misconception. As a nonprofit leader, you or your grant writer must build marketing into your proposal budgets. Why? In my experience, long gone are the days when TV and radio stations offered public service announcements (PSAs). Most traditional media is outdated. Investing in digital media (aka social media) advertisement, paying for software licenses and subscriptions to create graphics and print-worthy files and contracting a graphic designer, paying for the creation of video or audio files to share your message are not “extras,” they are essential to your nonprofit’s success.

Strong HR, finance, and tech systems aren’t bureaucratic. They’re foundational.
These three areas keep the programs and events going. A nonprofit cannot run a program without someone overseeing HR – even if it’s a volunteer-run organization! Someone in the nonprofit must oversee volunteers.

The finances are key to your nonprofit’s operations. The Board, in the absence of paid staff, must oversee the financials. When paid staff is in place, I believe the second most important and powerful role in any organization is held by the CFO, the Director of Finance or the person who oversees the financials.

Finally, we have the technology system – what do you have in place to run your organization? From email security (SPAM, phishing, scams) to accepting and managing financial transactions like online donations, this is an extremely important aspect of your operations. It is also worth the investment as the last thing you or your Board need is to have a data breach, which can and will impact your constituents.

The truth? Overhead is not the opposite of impact. It’s what makes impact possible at scale.

Obscurity Hurts More Than Overhead

While many organizations cut costs to appear efficient, they often miss something just as critical: visibility. If no one sees your work, understands your outcomes, or connects emotionally to your mission, your growth stalls, regardless of how lean you run.

Visibility Is a Strategic Asset

Being visible isn’t about self-promotion. Being visible is about stewarding your mission well. That includes: how you tell your story so funders, partners, and communities can invest in and amplify your work; sharing your outcomes in ways that are clear, credible, and compelling; and, positioning your brand as a trusted leader in your space and not an invisible actor behind the scenes.

A compelling public presence doesn’t dilute your mission. It expands your reach.

In today’s information-saturated world, silence is not humility. It’s a missed opportunity. The more you hide your impact, the more power you give to the myth that overhead and visibility are indulgences and not investments.

You have the power to change that narrative. You want to be front and center, in full transparency, before your funders.

Infrastructure Is Impact, If Built Strategically

Let me be clear: I am not advocating for bloated systems or wasteful spending. I have also seen nonprofits splurging on excessive and unnecessary “line items”, which completely horrify me knowing there are people in real need.

There’s a big difference between excess and investment. And mission-aligned infrastructure is one of the smartest investments you can make.

What Does Strategic Infrastructure Looks Like?

Instead of thinking about infrastructure as “overhead,” think about it as the backbone of your impact. This is seen in a CRM system that helps you track donor engagement and scale outreach. This is the also that project management tool that improves coordination across departments. Strategic infrastructure is also a training program that up-skills your staff and nurtures retention. It is also the dedicated communications team that shares your work, values, and wins clearly and consistently.

All of these systems cost money, I am not saying they don’t, but what I need you to see is that they multiply your nonprofit’s effectiveness.

Smart Growth Starts from the Inside

Organizations that scale sustainably have something in common: they invest in the systems that support their mission, not just the programs. This means they are prioritizing: clear operational workflows; defined decision-making structures; aligned performance metrics; tech platforms that reduce manual labor; and, staff who feel equipped, trusted, and supported.

I have seen organizations unlock exponential growth, by building smarter, not by doing more. I have also seen organizations fold because they can’t see beyond their current reality: they’re not willing to invest and, in the end, it wasn’t sustainable.

From Scarcity to Sustainability: A Shift Worth Making

If you’ve been conditioned to believe that anything not directly tied to service delivery is a threat to your legitimacy, know this: you are not the only one. And you are not wrong for needing more! Remember that.

The truth is, mission-driven work is complex, demanding, and deeply human. It requires structure, strategy, and visibility plus passion and persistence. It’s time to stop shrinking yourself to fit outdated expectations.

It’s time to:

• Fund infrastructure like it matters because it does.
• Claim visibility as part of your impact and not separate from it.
• Name burnout as a systems issue, not a personal flaw.
• Build operations that serve your staff as much as your constituents.
• Tell your story as boldly as you live your values.

Five Action Steps to Reframe Overhead and Visibility

Take a few minutes to consider the following as you work on the livelihood and the future of your nonprofit and start strategizing based on then answers you get. Start small, but start making the change soon.

1. Audit Your Budget Language
   • How is overhead labeled? Are critical costs being minimized to appease funders? Who is really being impacted?
   • Could you reframe “administrative” items as “capacity-building” or “sustainability investments”? It’s all a play of words, my friend!
2. Make Your Impact Visible
   • Create a communications plan that shares stories, outcomes, and behind-the-scenes work. Include your staff (or volunteer staff!) in sharing the wonderful work the organization is doing.
   • Invest in storytelling that centers the communities you serve, with their voices leading. Same as above. Everyone has a story to share.
3. Educate Funders
   • Use your grant reports, meetings, and pitches to explain the role of infrastructure in long-term outcomes. Give them a great presentation, then leave them asking for more so they can get involved too.
   • Advocate for unrestricted funds and demonstrate what they unlock. Show and tell. If you received funding, toot your organization’s horn! If you’re applying for funding you have yet to receive, then highlight all the great things you’re doing and how the expected funds can help.
4. Invest in Staff Capacity
   • Develop systems to prevent burnout. Set realistic workloads, provide access to professional development, advocate for mental health support. There are plenty of trainings at reasonable prices – or free – both in-person and online. By the way, this applies for the most top executive to the lowest paid employee. It is not about who “carries the heaviest load,” it’s about everyone carrying the load together.
   • Fund the people behind the mission, not just the mission itself. Investing in your staff/volunteers also looks like: build time into their work schedules to attend professional development programs; setting intentional time for them on your schedule to check-in (about both professional and personal matters); facilitating promotion opportunities within the organization (from specialist to manager, from manager to director, etc)
5. Celebrate Your Operations – There is no such thing as a small “win” because every win counts!
   • Recognize the HR manager who created a more inclusive hiring process.
   • Spotlight the ops team that reduced inefficiencies through smarter workflows.
   • Share how behind-the-scenes work fuels front-line change.

Ready to Lead with Clarity, Visibility, and Strategy?

At Mejora Global, we look forward to partnering with mission-driven organizations and leaders who want to shift from scarcity thinking to strategic growth. I believe that infrastructure isn’t the enemy – it’s the key to impact, equity, and endurance.

Once you’re ready to move from hiding your brilliance to building your base… 📅 book a strategic session to align your internal systems and external presence with the mission that drives you.

Because it’s not about looking “lean,” it’s about being strong, smart, and seen.

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