Report: Nonprofits struggle with overhead money
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WASHINGTON (Map, News) - While nonprofit organizations frequently can get grant money to fund specific programs, they often have difficulty obtaining dollars for overarching expenses and essential administrative costs, a new report says.

The National Committee for Responsive Philanthropy published the report, “A Call To Action: Organizing to Increase the Effectiveness and Impact of Foundation Grantmaking,” Thursday. It urges nonprofits to lobby foundations and convince them to allot moneys for more general purposes, author Rick Cohen said Friday.

Foundations often shy away from giving undedicated funds because they think they can measure the impact of their dollars better if the money goes to a specific cause, Cohen said. Foundations also sometimes worry whether a nonprofit can be held accountable for such funds, he said.

General operating support is essential to an efficient, well-run nonprofit, according to Nonprofit Roundtable of Greater Washington Executive Director Chuck Bean.

“The sophisticated funders know this,” Bean said, pointing to local organizations such as The Meyer Foundation and The Cafritz Foundation. “Less experienced funders focus too much on project support.”

Some foundations have taken steps to correct the problem. The Washington-based Bank of America Foundation devotes $20 million annually to its neighborhood excellence initiative, which allots unrestricted funding to nonprofits.

Under one component of the program, two nonprofit organizations are selected from each of 44 markets, including D.C., to receive $200,000 worth of unrestricted funding, the foundation’s senior vice president and market development manager, Jeannan Peterson, said. Their executives are given leadership development seminars as well.

“It’s a very important issue, and that’s why we’re recognizing it, especially to support their needs for capacity growth,” she said.

Foundations and nonprofits still need to communicate better on the issue, Quality Trust for Individuals with Disabilities Director of Development Nadine Hathaway said. Foundations need to understand how their dollars are making an impact, and nonprofits must explain how they grow stronger with core support, she said.

“We are fortunate in the D.C. metropolitan area to have many foundations enter into this conversation,” Hathaway said.

melissa.frederick@dcexaminer.com


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10:36 PM MST on Tue., Jun. 10, 2008 re: "Young chopper mechanic searching for new owner"

Examiner Reader said:
Funny that the point has been lost in this article.Better take a good look at what you get into.

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4:44 PM MST on Thu., Jun. 5, 2008 re: "Group seeks summer activities for low-income youth"

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10:13 AM MST on Tue., May. 27, 2008 re: "Unusual nonprofit makes youth dreams come true"

Examiner Reader said:
I guess the answer to my previous question is, "No, Mr. Corrigan is incapable of writing about anything other than Nonprofits." I guess the Examiner realizes that if he writes about anything else, Mr. Corrigan only spouts he own political views instead of reporting.

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10:22 AM MST on Tue., May. 20, 2008 re: "Soros group works behind the scenes on justice, education, drug treatment"

Examiner Reader said:
While I realize that Mr. Corrigan has limited writing skills and he enjoys wearing out his Thesaurus in an attempt to impress people with his vocabulary, can't he write about anything other than Nonprofits?

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10:56 AM MST on Wed., May. 14, 2008 re: "Group seeks summer activities for low-income youth"

Examiner Reader said:
At least this time Mr. Corrigan wrote a variation on his theme of the past 10 weeks, instead of just the same story with different words.

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11:57 AM MST on Tue., Apr. 29, 2008 re: "Ministry stresses local entrepreneurship"

Examiner Reader said:
It seems as though the Examiner just lets Mr. Corrigan recycle the same story every week or so, and has let him do it for about the last 9 weeks. As much as I support recycling, I think it might be time for a new topic.

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4:59 PM MST on Thu., Dec. 6, 2007 re: "Washington-area nonprofits coordinate different crisis-management strategies"

Examiner Reader said:
It's only a matter of time. Plan thoroughly, consider all options, and where roadblocks are placed before you, find alternatives. Remember that during the Katrina evac, all the buses where in the up-scale part of town that the walkers from poor sections couldn't get to in time. Please be careful. People need you, but there are those who don't want you to succeed.

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8:32 AM MST on Thu., Nov. 22, 2007 re: "Study: Nonprofit employment growing faster than private sector"

Examiner Reader said:
With all the shady, non-taxed, I mean, so-called, non-profits in Maryland, working for a non-profit is working in the private sector.

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11:40 AM MST on Tue., Aug. 14, 2007 re: "Marian House helps at-risk women cultivate independence"

Huh? said:
"[T]his $1.6 million, 22-employee nonprofit has a track record to support its claim." Okay, fair enough. So, what's the track record? Also, if the org has helped about 1,000 women since 1994, that's fewer than 90 women per year and there are 22 employees! It had better be successful at that ratio. Another point: Not-for-profit is merely a tax status. It does not mean that administrators cannot earn a handsome salary. I am not suggesting that is the case here but there's a reason these places don't share that info without being asked.

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8:50 AM MST on Tue., Jul. 3, 2007 re: "Martha’s Place promotes hope for women overcoming addictions"

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12:18 PM MST on Tue., Jun. 19, 2007 re: "Health Care for the Homeless to expand services"

Examiner Reader said:
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12:20 PM MST on Wed., May. 23, 2007 re: "D.C. charity helps kids pump clean water in Africa"

Matthew C. Andrea said:
Please post the contact information for PlayPumps International. This concept is brilliant, fun and uplifting. Definitely something that I would like to support.

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7:21 AM MST on Wed., May. 2, 2007 re: "Advisory board trims list of nonprofit grant applications"

Examiner Reader said:
When is Montgomery County going to realize that Casa of MD is taking them/us to the cleaners?

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