Who’s Afraid of “Administration”? #
December 29th, 2008 | In Worth Considering
Catherine Rampell thinks people spend too much time worrying about high administration costs when giving to charity:
While there is something to be said for charities that know how to keep their administrative costs under control, lower costs are not always better. For example, many nonprofits seem to cut corners on backroom tasks like bookkeeping and record-keeping because these expenses aren’t viewed as critical to the “mission.” But spending less money on such administrative costs can actually make a charity less effective because it invites embezzlement, a crime that perpetually afflicts nonprofit organizations.