Source: Ann Goggins Gregory & Don Howard, Stanford Social Innovation Review, Vol. 7 no. 4, Fall 2009
From the abstract:
A vicious cycle is leaving nonprofits so hungry for decent infrastructure that they can barely function as organizations–let alone serve their beneficiaries. The cycle starts with funders’ unrealistic expectations about how much running a nonprofit costs, and results in nonprofits’ misrepresenting their costs while skimping on vital systems–acts that feed funders’ skewed beliefs. To break the nonprofit starvation cycle, funders must take the lead.