Friday, May 27, 2005

ENN: Environmental News Network Inside the World of Nonprofit Finance

ENN: Environmental News Network [[ ENN Sustainable Economy News ]]: "Though nonprofits provide critical services to society there is little understanding of the way in which the nonprofit sector is hamstrung by irrational financial rules the for-profit sector doesn't encounter, according to a new article in the Spring 2005 edition of the Nonprofit Quarterly.

In 'The Looking-Glass World of Nonprofit Money: Managing in For-Profits' Shadow Universe,' Clara Miller, president and CEO of the Nonprofit Finance Fund (NFF), uses the following hypothetical illustration to show how for-profit and nonprofit financial practices operate in very different ways: '� you're the owner of a restaurant. Your paying guest comes to pay the bill, offers a credit card, and prepares to sign the charge slip. But before signing, the guest says, 'I'm going to restrict my payment to the chef's salary. He's great, and I just want to make sure I'm paying for the one thing that makes the real difference here. I don't want any of this payment to go for light, or heat, or your accounting department, or other overhead. They're just not that important. The chef is where you should be spending your money!'"

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