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Truth or Consequences: The Implications of Financial Decisions (The Nonprof
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Does a diversified revenue base make for a more profitable—and therefore sustainable—nonprofit? Does government funding create big financial problems? Does owning a facility improve an organization’s financial health? In a recent study, Nonprofit Finance Fund analyzed IRS Form 990s from 1,085 youth-serving organizations in five states with annual expenses of greater than $1 million. Unsurprisingly, the findings show that the conventional wisdom often falls short of describing reality and may lead organizations and funders to make strategic errors that undermine organizational effectiveness for decades.
Does a diversified revenue base make for a more profitable—and therefore sustainable—nonprofit? Does government funding create big financial problems? Does owning a facility improve an organization’s financial health? In a recent study, Nonprofit Finance Fund analyzed IRS Form 990s from 1,085 youth-serving organizations in five states with annual expenses of greater than $1 million. Unsurprisingly, the findings show that the conventional wisdom often falls short of describing reality and may lead organizations and funders to make strategic errors that undermine organizational effectiveness for decades.
