Tuesday, March 25, 2014

Third Answer

EQ: What is the best way for an educational non-profit organization to raise funds for resources to help underprivileged students attend college?

The best way for an educational non-profit organization to raise funds for resources to help underprivileged students attend college is by expanding their overhead budget.

  • Most non-profit organizations skimp out on their overhead expenditures.
    • With less money to spend overhead, non-profits aren't able to afford the services and items they might need to keep the organization running fluidly. 
  • A larger overhead budget means that employees are better payed, resulting in better services provided and increased productivity.
    • A better payed employee is always a harder working employee.
  • Larger overhead spending means that non-profits are less prone to under-report their spending.
    • Under-reporting leads to funders providing NPO's with less money to spend overhead, therefore putting more burden on NPO's. They must work harder with less money to make up the deficit. 
Non-profits have to increase their overhead spending in order to revitalize themselves with trained and able staff, adequate services, and better programs. 



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