Managing administrative costs are a challenging part of nonprofit management. As much as you want every cent of what you earn to go toward your cause, you need to invest in your nonprofit as you would any other business. On average, most charities spend about 36.9 cents on the dollar in overhead costs; however, this varies significantly based on the organization’s size and goals. One way to use your overhead wisely is to have other nonprofits raise money for you this is called pass through funds nonprofit and we will address it below.
A nonprofit needs money. When managed responsibly, nonprofits can use their administrative funds to grow in ways they otherwise couldn’t—making their efforts bigger and more effective. Don’t think of your administrative overhead as waste, but rather an investment in the development of your non-profit so you can do more. Here are some common admin expenses that are invaluable to your organization.
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