February 14, 2013; Source: San Diego Union-Tribune
NPQ has repeatedly written about the impact that buildings can have on organizational flexibility. In fact, Clara Miller’s article, “The Four Horsemen of the Nonprofit Financial Apocalypse,” points to research from the Nonprofit Finance Fund that indicates that:
“…about one-third of organizations that acquire facilities can manage these shoals well. This third ends up with a building that cradles the program and works financially: a true triumph. Another third manages to complete the building but arrives gasping on the beach; as a result, this group becomes the walking wounded. Among this group, program quality and financial health are typically impaired for years.
For a final third, financial imbalance pervades operations to the point of requiring reorganization or even extinction.”
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