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When discussing overhead, I ask folks if they would want to fly in an airplane if ticket costs only covered the pilots’ and flight attendents’ salaries plus the fuel. I think most people would say “No”. Airlines need overhead for inspections, maintenance, and upgrades to make sure that the craft is safe. All too often, funders (often local government) only want to include direct salaries and supplies in grants and no overhead. Just like this could create safety issues for an airline, it creates financial insecurity for a nonprofit.