Not More, Better: Reframing the Problematic Dynamics of Government Funding

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Nonprofit Quarterly Newsletter
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This article discusses the dysfunctional nature of non-profit funding. In response, nonprofits have, for decades now, focused their advocacy on arguing for more money on the basis that current funding levels do not cover their “true costs,” defined as covering the costs to deliver the services in question, including an allocation that fully covers the associated indirect costs. While it is vital that nonprofits understand their true costs—and many do not, ironically, because their accounting systems are oriented around contract and grant tracking rather than full program tracking—the more-money strategy is largely a losing one for nonprofits. 

Read why the "More Money" approach doesn't work HERE

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