Nonprofits are lacking the resources to fully utilize AI | Fast Company

Uncertainty is the defining condition of our time. The pandemic reminded us how quickly our systems can fracture. Today, with political shifts, economic instability, and technological disruption intersecting, leaders are preparing for more turbulence ahead.

From where I sit, however, there are nearly 2 million reasons to be optimistic. America’s 1.9 million nonprofits make up a fiercely resilient force for scaling impact to our toughest challenges. They deliver food and housing, safeguard youth wellbeing, respond to natural disasters, and fight for fairness and opportunity. They are trusted by millions of people across many topic areas—and they are built to move fast, adapt, and deliver under pressure.

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Demanding That Nonprofits Not Pay For Overhead Is Preventing Them From Doing Good | Co.Exist

When foundations or individuals donate to an organization, they often expect their money is going to triage the issue—providing clean water, feeding children—and not to paying for office space or corporate retreats for nonprofit workers. To solve this, most foundations pay only up to 15% of any socially good group’s indirect costs, things like office space, salaries, or equipment.

But a new report from Bridgespan, a consulting firm for nonprofits and philanthropists, says this is incredibly damaging. The result is a “starvation cycle” in which foundations are crippling the outfits they’re trying to support. In the commercial world, investors have come to expect that companies in different spaces require different overhead. There is no boilerplate expense sheet. That’s a lesson nonprofit funders have failed to learn.

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