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Reduced Operating Expenses
Why? Mr. Birnbaum demonstrated that most nonprofits are undercapitalized in their core services. In other words, the cost of administering nonprofits is often artificially low because of a desire to infuse as many of the organization's limited resources into its programming. How often has an organization continued to utilize an out-of-date computer, which slows other operations, just to avoid the expense of a new one? The practice of funneling maximum resources to programming then colors aspirations for cost savings in new alliances. His message seemed to be when considering partnering or merging that the two organizations should challenge assumptions about how the new joint venture will actually function.
Whether or not an organization considers a joint venture, challenging operational assumptions is a healthy exercise. In what specific ways do you feel your organization might be "undercapitalized"?