1. Nonprofits Face a Host of Daunting Challenges - BusinessWest

    Nonprofits Face a Host of Daunting Challenges - BusinessWest

    Managing a nonprofit agency has never been easy, but a number of factors, from low unemployment rates and rising employment costs to new labor regulations and immense competition for donor dollars, are making it much more difficult for organizations to carry out their missions.  Joan Kagan compares the effects that unfunded mandates and rising costs have on a nonprofit to a bad tomato season. Well, sort of.

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    1. There was a lack of good tomatoes around, so that restaurant owner had to pay a higher price for his tomatoes, and he was passing that cost onto the customer.
    2. What's more challenging now for my type of business is that so much of our revenue is established as a rate by somebody else.
    3. The state tells us how much they're going to give us for a service, and we figure out how we can create a high-quality, desirable service with the money that they're giving us.
    4. The goodness of what people want to do to give people a better quality of life through income is not going to be achieved.
    5. We've always been able to find ways that we can do more with less.
    6. Not only are we dealing with the same type of funding level as we have had five or 10 years ago, the expectation for the service from the customers that we're seeing is that they want a better service, and we're not getting better funding for that service.
    7. That doesn't leave a lot of room to find money when there is something that represents an increase in the cost of paying our employees or supporting them.
    8. The vast majority of folks, certainly in the business community, don't understand that we're businesses too.
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