Six Steps to Finding the True Cost of Programs

Although nonprofits generally have a good understanding of their revenues, knowledge about costs can sometimes be less robust. This is particularly the case when it comes to the true, all-in costs of providing services, running programs, and otherwise operating the organization.

Lacking this information, nonprofit executives often must make important resource-realted decisions on the basis of intangibles such as intuition, the skills and knowledge of the program staff, or the preferences and inclinations of the organization’s funders. As a results, they run the risk of undermining their organization’s mission (however inadvertently), by failing to allocate resources to the most appropriate programs and services. Given the limited resources available to nonprofits (especially during financially challening times), gaining economic clarity around costs is critical to inform key strategic decisions.

The Nonprofit Cost Analysis Toolkit helps nonprofits to understand their true-cost structure and gain economic clarity.


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