Nonprofits can become more resilient by spending more on fundraising and admin − new research

Most food banks, homeless shelters and other social services nonprofits constantly face hard decisions about how to use their limited funds. To help nonprofits tackle this quandary, we teamed up with two other business professors, Arian Aflaki and Goker Aydin, to develop a mathematical model to guide nonprofits on how to divvy up their spending to optimize both current performance and future resilience through their spending priorities. Having observed how charity watchdogs like Charity Navigator rate nonprofits, our model takes into account that spending more on core programs leads to increased funding for a nonprofit.