The Business of Nonprofits

This is a lengthy article, but well worth the time to read.   Please check it out over at the Philanthropy News Digest.

The Nonprofit Starvation Cycle

by Don Howard, Ann Goggins Gregory A vicious cycle is leaving nonprofits so hungry for decent infrastructure that they can barely function as organizations — let alone serve their beneficiaries. The cycle starts with funders’ unrealistic expectations about how much running a nonprofit costs, and results in nonprofits misrepresenting their costs while skimping on vital systems — acts that feed funders’ skewed beliefs. To break the nonprofit starvation cycle, funders must take the lead.