If you're a food bank, homeless shelter, or other social service organization, you probably have a tough question on your hands: How much should you spend on administrative costs? Conventional wisdom has it that almost all of a nonprofit's budget should go to program costs, but new research out of Ohio State and Notre Dame suggests that small, new nonprofits should spend more on administrative costs than larger, more established nonprofits, the Conversation reports.
"This investment lays a solid foundation for long-term resilience and ensures they are better equipped to serve their beneficiaries," say the researchers, whose model was based on an analysis of the relationship between administrative costs and a nonprofit's capacity, which includes its infrastructure, equipment, staff, and other resources.
The researchers also found that if a nonprofit expects to take on larger projects or greater responsibilities in the future, it would be prudent to increase administrative spending now to prepare for those challenges.
What's more, once a nonprofit's financial health is no longer shaky, those groups tend to cave again to their donors' concerns, cutting their budgets for fundraising and administrative activities.
But there are signs that this cycle might be breaking, with big donors like the Ford Foundation now dedicating 20% to 25% of their grants to cover overhead,
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Vertical farms are designed in a way to avoid the pressing issues about growing food crops in drought-and-disease-prone fields miles away from the population centers in which they will be consumed.