Pay-What-It-Takes Philanthropy
An article that argues funders should pay the real costs of the work they fund, in place of the common 15 percent cap on overhead. The Bridgespan authors show that indirect costs at 20 high-performing nonprofits ranged from 21 to 89 percent of direct costs, with a median of 40 percent. They describe the starvation cycle, show how cost structures differ by type of nonprofit, and propose reimbursing costs by segment.
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How to cite
Jeri Eckhart-Queenan, Michael Etzel, Sridhar Prasad (2016). Pay-What-It-Takes Philanthropy. Stanford Social Innovation Review. https://ssir.org/up_for_debate/article/pay_what_it_takes_philanthropy
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