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Nonprofits can become more resilient by spending more on fundraising and admin − new research
Donors and grantmakers often pressure nonprofits to spend as little as possible on fundraising and overhead.
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Charities can get a 6% donations boost when Charity Navigator gives them more stars – but to get there, they might game the system
Getting an extra star or two from a prominent ratings group can make a bigger difference than a social media campaign or a slew of thank-you calls.
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Nonprofits may need to spend about one-third of their budget on overhead to thrive – contradicting a rule of thumb for donors
Two scholars found that when arts nonprofits devote 35% of their budget to overhead, they fare best in terms of attendance.
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Charities that don't embrace common financial norms tend to outperform their peers
A new study adds to a body of work that casts doubt on the wisdom of the standard rulebook many donors expect charities to follow.
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