Public charity status brings federal income tax benefits to an exempt entity, and to its potential donors. An … organization can obtain public charity status because of the nature of its organization and operations, or by showing that it is …

Charity rating agencies often focus on overhead cost ratios in evaluating charities, and donors appear to be sensitive …-used metric and a charity’s effectiveness. There is evidence that a focus on overhead costs leads charities to underinvest in … whether donors care about overhead costs, whether they are good measures of charity effectiveness, and what effects a focus on …