NPA Roundtable Series – May 2022 – A halleluiah moment for charities!
Prior to the Covid-19 pandemic many NFP’s were already operating with thin or no margins and limited reserves, a situation that has only escalated in the current economic climate. The pressure to underreport indirect costs (HR, IT, finance), and widespread underfunding of direct program expenditure, leaves NFP’s vulnerable and in a ‘starvation cycle’ limiting their ability to deliver impact.
In a halleluiah moment for charities, there has now been formal acknowledgement that low overhead costs are not a true indicator of effective service delivery.