Nonprofit Overhead Reporting: Yikes! Another Systemic Issue

Alluding to Willy Wonka (the original 1971 classic, not the silly remake), “What do you get when you…have the absence of an explicit and widely-accepted definition of overhead, limited IRS surveillance of nonprofits’ Form 990s, infrequently enforced penalties for incomplete or inaccurate reporting, omnipresent and tacitly-accepted financial misreporting, donors rewarding agencies for misreporting, the expectation to “do more with less,” burnout, etcetera, etcetera, etcetera?” One of the innumerable systemic problems experienced in our 21^st century society, adding to the list of closely-related quandaries including adversarial political vitriol, heartless capitalistic/imperialistic greed (exaggerated self-preservation), the massively uneven distribution of wealth, irresponsible representation, the localized recession of collective-bargaining rights, high unemployment, the increased consumption of and dependence on toxic non-renewable resources, and the enormity of bureaucracy. “What do you think will come of that? I don’t like the look of it.”

Bedsworth, Gregory, and Howard offer some logical and insightful recommendations for mitigating nonprofit overhead reporting issues: encouraging funding for administrative and fundraising expenses, more open dialogue concerning overhead, promoting a standard definition of the term “overhead,” and agency strategic planning and discussions distinguishing the importance of infrastructure investment. Certainly, many organizations apply these suggestions. However, for a multitude of service-based nonprofits, experiencing reduced funding and increased service demands, the authors’ proposals may not materialize as intended. Should these nonprofits reallocate program expenditures to infrastructure investments, thus sacrificing necessary services? In applying the referenced recommendations (or not), what are the ramifications for a given struggling community-based nonprofit? And more importantly, how would this affect beneficiaries and communities?

Again, I will reference certain PBS edutainment internet videos, in which the subject matter contained therein is relevant to all of these questions and concerns, as well as public administration, social work, politics, law, business, society, etc. Developing technologies promise to change the world, eliminating current calamities though introducing a new set of concerns. To apply an administrative principle, acquiring knowledge permits conscientious strategic planning. To make tactical and proactive decisions, we need to educate ourselves and our community.

Instead of browsing Facebook or watching the rubbish on network television, absorb these PBS episodes. They’re good for you, like eating your vegetables.

Segment, “Profile: Jay Keasling” (only 11:45)

http://video.pbs.org/video/1801235544

Do you consider Mr. Keasling a social entrepreneur? I do.

‘NOVA – Making Things’ with New York Times columnist David Pogue, is a four-part series which focuses on the science of materials. I suggest watching the episode ‘Making Things: Smaller’ first.

http://video.pbs.org/program/979359664/

The fifth season of ‘NOVA – Science Now’ with astrophysicist Neil deGrasse Tyson, is a six-part series in which each episode focuses on answering a question (a “big” question).

http://video.pbs.org/program/979359667/

And let’s get some comments! You know you want to write something.