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Though it is tempting to try to capture the entirety of the "efficiency" of a non-profit with a single number, it isn't really helpful. In particular, it turns
by sanj 13y ago
Though it is tempting to try to capture the entirety of the "efficiency" of a non-profit with a single number, it isn't really helpful.
In particular, it turns out that "administration" doesn't scale linearly. A 4 person nonprofit still needs their ED to spend ~50% of time fundraising; there's likely >15% of your salary right there.
Information from folks that have done this for a while: http://philanthropy.com/article/3-Major-Charity-Groups-Ask/139881/ http://philanthropy.com/article/3-Major-Charity-Groups-Ask/1...
Data, if you want: http://nonprofitquarterly.org/management/22239-new-study-low-nonprofit-overhead-does-not-greater-efficiency.html http://nonprofitquarterly.org/management/22239-new-study-low...
- dragonwriter 13y ago> Though it is tempting to try to capture the entirety of the "efficiency" of a non-profit with a single number, it isn't really helpful. Even when it would be, "ratio of total spending to administration spending" probably is almost never the right single number.
- sanj 13y agoI was using Unicode "scare-quotes". They may not have rendered accurately. http://en.wikipedia.org/wiki/Scare_quotes http://en.wikipedia.org/wiki/Scare_quotes
- marincounty 13y agoYes--there's no real number on administration costs. Maybe that's the problem? Just keep giving--we're complicated! I guess I keep giving to the nonprofits that sound good? The one's that advertise on T.V.? Any nonprofit founder, should be able to answer a few questions; "How much do you, the founder expect in salary-- present and future. If we decide to fund your initial nonprofit, would you agree to work for these amounts? If you want to make a large salary--start a for-profit business. There's nothing wrong with wanting to make a good living, but don't hide behind a nonprofit entity. Oh yea, Obama is hip the nonprofit dance, but hasn't done anything. A few years ago, he wanted to separate legitimate nonprofits from just money making businesses. As far as I know, nothing has been done?