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Colleen's avatar

Thank you for touching on this as it pertains to the arts. The nonprofit sector in general has a HUGE staff burnout issue for exactly this reason.

There were several high-profile exposés in the 1990s & early 2000s about nonprofit executives who were making truly outrageous salaries. Unfortunately, the response has been that many nonprofits now advertise that 100% of donor money goes to the mission.

But few large donors understand that operating expenses are a huge part of making sure the mundane parts of that mission actually function and, as you said, very few grants are available to fund that side of things. The result is a skeleton crew that lives on government assistance in order to do “meaningful” work, working inhumane hours in order to keep the mission alive. It’s an impossible situation.

I think using radical fiscal transparency *specifically* in marketing materials would go a long way toward helping donors understand how nonprofits function and gaining public trust and support for all aspects of a nonprofit’s budget.

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Patrick Barber's avatar

This is true even of some for-profit companies (usually small enigmatic ones) where the staff essentially take a lower pay rate in exchange to working on something they (at least feel like they) believe in. (Sigh. Actually that's true of most publishing companies. I guess what I am saying is you have really hit on something here.)

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