Pyrrhic Fundraising

Nonprofits pay dearly for their donations

This article analyzes how nonprofits may actually lose money – at least in the short term – when they try to raise funds through direct marketing. The authors advise that the study’s data may be more useful to larger, older nonprofits than to smaller, newer ones, because they focused only on larger organizations. A newly formed nonprofit, for example, may need to spend a lot more during its first few years of direct marketing to get new supporters than does a larger, more established nonprofit.

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