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How to Develop Your Nonprofit Operating Reserves

Blackbaud

This post was originally published October 2016 and updated January 2025. Operating reserves are a crucial part of a healthy financial statement, and there are several ways to calculate, hold, and manage those funds. Consult your auditor and CPA to identify the options that work best for your organization.

Contracts 103
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3 Strategies to Build Your Organization’s Financial Capacity

Blackbaud

Calculating indirect costs can be challenging. This post was originally published in March 2015 and updated in April 2024. For each program, break down its actual revenue and expenses, including its necessary overhead, such as your staff’s time devoted to office administration, marketing and fundraising for such program.

Finance 119
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With the rise of AI, Candid continues delivering philanthropy news with context 

Candid

They evaluate the provenance of the information we publish, ensuring that it is timely, correct, truthful, and well sourced. At Candid, a data-first organization, we understand the importance of vetting our news carefully, given how misinformationor simply inaccurate reportingspreads quickly in the world of digital news.

AI 52
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Up Close and Personal with Viken Mikaelian

Planned Giving

Viken Mikaelian is the CEO of PlannedGiving.com and Publisher of Giving Tomorrow Magazine. He was widely published in peer-reviewed medical journals. Number 3: Not putting a direct or indirect ask in every single marketing piece you put out. Competition can come from indirect and unexpected sources. Others simply forgot.

Indirect 111
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Is There Any Grant Money?

Tech Soup

The grantseeking challenge of organizational lack of time and staff relates to indirect and administrative cost control techniques; almost two-thirds of our respondents (65 percent) reported reducing staff in order to control overhead. Respondents were asked, "How did you reduce your indirect/administrative costs?"

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Debunking Myths About Nonprofits – Let’s Make Sure to Get the Facts

GrantNews

Reality: Operating costs, such as paying utility bills, rent, salaries, and investing in office equipment are referred to by a variety of names, including “overhead,” “administrative costs,” and “indirect costs.”

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The Overhead Solution: A New Nonprofit Pride Movement

Tech Soup

The CEOs of BBB Wise Giving Alliance, Charity Navigator, and GuideStar USA published a second open letter last year with the express goal to "crush" the overhead myth, the idea that overhead ratios should serve as the sole basis for evaluating nonprofit performance. If so, you've fallen victim to the overhead myth.