The Nonprofit Starvation Cycle
A short article on why nonprofits underfund overhead such as IT, finance systems, training and fundraising. It describes a 3-stage cycle: funders expect low overhead, nonprofits feel pressure to match, then underspend and underreport their costs. It cites data on real versus reported overhead rates. Closing sections set out what funders can do, such as general operating support, and what nonprofit leaders and boards can do.
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How to cite
Ann Goggins Gregory, Don Howard (2009). The Nonprofit Starvation Cycle. The Bridgespan Group. https://www.bridgespan.org/insights/the-nonprofit-starvation-cycle
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About C109 The Nonprofit Starvation Cycle
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