"Too many times, those who lead, operate, and volunteer for a nonprofit organization get so caught up in either the idea of 'nonprofitness,' or so mission-focused, they either lack the ability or refuse to understand the fact they are also a business," writes BrainCloar in a Wall Street Journal op-ed on why nonprofits are struggling with the business side of their organizations.
"I have seen several trends that have led to the diminishing and degradation of a nonprofit's objectives, and I am not alone in this experience."
Here are some ofCloar's points: Too many leaders "get so caught up in the idea of 'nonprofitness,' or so mission-focused, they either lack the ability or refuse to understand the fact they are also a business."
Overhead costs "often center around the charity watchdogs and their rating systems, which generally favor a lower administrative expense percentage.
In addition, many funders also favor a lower overhead cost assuming that lower overhead costs mean more funds go directly to programs and community impact.
However, this is not necessarily the case.Organizations that build robust infrastructurewhich includes sturdy information technology systems, financial systems, skills training, fundraising processes, and other essential overheadare more likely to
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