| abstract | - More than 65% of nonprofit leaders say they are cutting overhead to get through these tough times. This is alarming, given that most organizations already skimp on critical infrastructure and capacity investments that are necessary to deliver results. In their recent SSIR article, "The Nonprofit Starvation Cycle," Ann Goggins Gregory, Director of Knowledge Management, Bridgespan Group, and Don Howard, Partner, Bridgespan Group, wrote about the dynamics of this vicious cycle of overhead costs. The cycle starts with funders' unrealistic expectations about how much it costs to run a nonprofit. As a result of these expectations, nonprofits often misrepresent their costs while skimping on vital systems, thus feeding the perception that they can run with almost no overhead. No one—funders, nonprofits and especially beneficiaries—benefits from perpetuating the cycle, and it's time to take action.
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