The growing tide among foundations to help their nonprofit grantees cover overhead expenses should be extended to include financial support for fundraising efforts, Charity Defense Council head Dan Pallotta writes in the Harvard Business Review.
Mr. Pallotta, who touts the benefits of charities’ overhead spending, applauds the push by some big foundations to make “capacity building” grants that pay for administration, information technology, employee training, and other operational costs. Such support includes fundraising “just sometimes,” he writes, because “no one likes to fund fundraising. It’s sales. We turn up our nose.”
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