Article: Pay-What-It-Takes Philanthropy

Publication date: 
June 2016
Stanford Social Innovation Review
Illustration showing a lamp, desk chair, and desk.

This Stanford Social Innovation Review article argues for a new grantmaking approach-- "one that provides enough money for nonprofits to pay for all their operations, not just programs and services."

By Jeri Eckhart-Queenan, Michael Etzel, & Sridhar Prasad | Summer 2016

The authors examined the indirect rates of more than 20 nonprofit organizations in order to understand exactly how much organizations are spending on all aspects of their operations. They discovered that "indirect costs make up a much larger percentage of a nonprofit’s total costs than is widely understood." This article outlines their findings, the implications for nonprofits, and some questions for the sector in light of their work.

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