Government Shortchanges Nonprofits, Quashing Innovation

While recent coverage of the Clinton Foundation has focused on whether donors got special treatment, one thing that keeps being repeated as a saving grace is the foundation’s reputation for low administrative costs. “Overhead” is indeed a dirty word in the nonprofit world. This supposedly self-evident truth is why governments at every level have increasingly resorted to underfunding its contracts with social-impact organizations.

I’m making the heretical suggestion that, far from making charities more effective, efficient, and worthy, this practice is causing them to stagnate.

Read the full article in Crain’s NY Business.