A good measure of whether a not-for-profit organization is spending too much on overhead,such as general and administrative expenses,is

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The percentage of total expenses spent on the program function as opposed to supporting the programs is the best measure of whether a not-for-profit organization is spending too much on overhead. This is because not-for-profit organizations exist to fulfill a mission or purpose, and the program function is the core activity that achieves that mission. Therefore, a higher percentage of expenses dedicated to the program function indicates that the organization is using its resources efficiently to achieve its purpose.

A Good Measure of Whether a Not-For-Profit Organization Is Spending