Efficiency in Nonprofits
The March 21, 2008, issue of the Star Tribune has an interesting article about efficiency in nonprofit organizations. Here is an excerpt from the article:
After three years of planning, integration and execution, several Twin Cities human-service nonprofits have achieved higher levels of administrative competence, efficiency and cost savings through a shared-service approach to functions such as accounting, office technology and human resources.
“It means that our member agencies were able to serve more than 1,000 additional clients last year,” said Stan Birnbaum, president of MACC Commonwealth, the hybrid operation supporting what is now seven of the 21-member nonprofits of the Metropolitan Alliance of Connected Communities (MACC). “This [approximately $200,000] is no one-time annual savings. Our model ensures that this level of efficiency will continue.”
For the entire story, see “Nonprofits improving on how they do business” in the March 21, 2008, issue of the Star Tribune. For prior blog coverage about efficiency in nonprofits, see here and here. For my (David Brennen) own take on efficiency in nonprofits, see “The Charitable Tax Exemption is about Much More Than Efficiency,” Nonprofit Quarterly Magazine (2007) (a draft is available here).
DAB