Hot Topic: Fundraising Costs
Accountability of organizations to their constituencies has become one of the most important aspects of good governance in both the nonprofit and private sectors of our economy. In the charitable sector there is public interest in the effectiveness of organizations and efficiency of raising funds. The media has contributed to this interest through well intended reports to inform the public about fundraising costs. Often these reports are oversimplified and sensationalized, focused more on keeping cost ratios as low as possible (efficiency) rather than on maximizing net revenues to achieve the organization’s mission (effectiveness).
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