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Although it is possible that there are purely internal explanations for the Society's rising costs, it is likely that the causes are primarily external. The strongest evidence for this is the fact that other nonprofit institutions share this tendency toward inexorable expenditure growth. A recent study of thirty-two prominent nonprofit institutions found that total expenditures rose at a nominal rate of 10.6 percent between 1972 and 1992.

Bowen, Nygren, Turner, and Duffy (1994), p. 168).
Similarly, a study of five major independent research libraries (institutions very similar in many ways to the Society) showed that between 1960 and 1993, their total expenditures rose at an average nomi­nal rate of 9.9 percent per year.
Bergman (1995).
The data clearly testify to significant upward pres­sure on costs at these types of institutions. Given such pressures, it is unlikely that these organizations can hope to balance their budgets through sustainable decreases in total expenditures without significant reductions in services.

Further evidence supporting this assertion emerges from the Society's 1992-1993 financial crisis. Facing mounting deficits and a growing threat of bank­ruptcy, the Society cut operating expenditures by 17 percent in fiscal 1992 and by 20 percent in fiscal 1993. To accomplish these cuts, the Society reduced its total workforce from a peak of 125 employees in the 1980s to a skeleton staff of just 35 employees in early 1993. The Society closed its galleries and suspended all public programs. There is a limit, however, to how much an organization can cut, year after year. For organizations with valuable collections and fixed assets, overhead and other fixed costs exist that cannot be avoided. Even though the Society had drastically reduced programs and services, its total operating expenditures in 1993 were still $5.3 million.

Such austerity measures have consequences. Most important, it is extremely difficult, if not impossible, for an institution like the Society to generate significant contributed income while it is inactive. Such institutions are expected to offer exhibitions, public education programs, and community outreach services. After a certain point, reductions in expenditures decrease the capacity to generate revenue, both earned and contributed. In the case of the Society, the 1992 and 1993 cuts did not balance the budget; in fact, the deficit actually increased in 1992 and was still $1.5 million in 1993.

The implication of the unremitting pressure on costs is clear: if institutions like the Society are to remain financially viable for the long term, their revenues must grow steadily—and presumably faster than the overall inflation rate.

Revenues

Generating revenues that keep pace with an ever-expanding expenditure base is made more complicated by the fact that all nonprofit revenues are not created equal. Unlike the for-profit sector, where dollars received can be used for whatever purposes management and the board may choose, nonprofit revenues often come with strings attached. A donor may stipulate that funds given to an institu­tion be used only for a specified purpose, spent over an established period of time, or retained in perpetuity as capital. The types of revenues generated by a non­profit institution can be as important as the absolute dollar values, especially in a time of crisis.

Questions & Answers

how environment affect demand and supply of commodity ?
Amos Reply
Wht at the criteria for market ?
Amos
what is difference between monitory policy and fiscal policy?
Malik Reply
monetary policy is a policy thrust by National Govt(CBN) to influence government spending, purchase &taxes
Frank
necessity of economics
Pamela Reply
I will say want,choice,opportunity cost,scarcity,scale of preference
Alao
what is monopoly market.How price output are determined under monopoly market
bisham
b) Monopoly market is an impecfect market where s single firm having the innovation to produce a particular commodity.Prices are determined through output since there are no other competitive.
Frank
Monopoly market:firm has market power & does not respond to market price
Frank
Explain the process of price determination under perfect competition market with suitable diagram
bisham Reply
Price determination under perfect competition via this process :firms have no market power to influence price rather firms respond to market price.
Frank
price is different from demand- demand is amount of commodity
Effah Reply
demand is amount /quantity of commodity a potential buyer is willing to buy at a given price at market
Frank
demand is a desire of customer on commodity with the ability to pay it and willing to buy it at given price of commodity
Harika
demand is price of what
Faith Reply
show that shortrun average cost
Baby Reply
what is economics
Mbah Reply
what is money
Mbah
what is money
Mbah
Difine macro economics
agaba
money is a medium of exchange between goods and services,maybe inform of currency.
Wesonga
Economics is study of how human beings strive to satisfy numerous wants using limited available resources.
Wesonga
how do you find the maximum number of workers the firms should employ order to produce where there are increasing returns
Jane
what are implications of computing national income?.
agaba
pl
MUDASIRU
what is the formulae for calculating national income
MUDASIRU
it calculated by value added method
Praveen
classify the production units like agriculture, banking, transport etc
Praveen
money is anything that is generally acceptetable for human
Ogbaji
Estimate the net value added(NVA) at fixed cost by each industrial structure
Praveen
definition of unemployment
Adam Reply
what are the causes of unemployment?
Mbubi Reply
The main causes of unemployment are listed below. 1. Frictional unemployment 2. Cyclical unemployment 3. Structural unemployment
assani
We can also categorize the causes on a broader sense as: 1. Political and 2. Social cause As unemployeement root causes are embaded in this two.
Yonathan
would opportunity cost exist if there was no scarcity?
assani
yes just because the opportunity cost arose when there is Alternative to choose among the alternatives.
BADAMASIU
I am thinking that, if our resources were unlimited, then there wouldn't be any need to forgo some wants. Hence the inexistence if opportunity cost
assani
Politics
Job
politics has done what?
assani
consider time assani
Mary
I'm Emmanuel,...I taught the main cause is the change in gov't.
Emmanuel
...Lack of capital to set up a firm respectively
Emmanuel
🙈
Emmanuel
I would like to bring in Educational levels can also be the cause the cause of the problem respectively
Emmanuel
I think the main causes of unemployment is lack of INFRASTRUCTURAL DEVELOPMENT OVER POPULATION OVER DEPENDENT ON GOVERNMENT LACK OF SELF EMPOWERMENT...
ananti
lack of skills among the new generation is the serious issue.
Vishal
Where I come from , I don't see why education or personal aspects seem to do with unimployment, technically the motivation and eigerness in all works of live is there , dispite the cultural influence and physical bearriors;the thing we lacking is Government Support and open market ethics.
Joe
sorry about that-(repation). We have a over powering ethical political system that's displacing the marketing asspects of economy and causing large scale unemployment right across the board...
Joe
can someone Explain Expansionary Monetary Policy and Contractionary Monetary Policy Using one of the instrument of Monetary Policy? Please am kinda lost here?. ta
Emmanuel Reply
using a graph show the case of substitute and compliment goods
Ade Reply
can anyone give me a simple explanation to Five Sector Macroeconomics?
Emmanuel
Can someone please define what economics is
jason Reply
economics simply is a social science subject that study human behavior.
dajan
economics is a social science which studies human behaviour as a relationship between ends and scarce means that has alternative uses
Alao
Can someone please tell me how to calculate GDP
Emmanuel
emmanual kapal to calculate GDP (Gross Domestic Product) has three method in calculating it (1)income approach (2) expenditure approach (3) value added method
Alao
thanks Alae
Emmanuel
u are welcome
Alao
in basic terms economics is revered to as battery system, it date back to when Men sees the need to exchange sapless goods and produce to gain , either wealth , basic necessities or to establish trading ties for personal benefit or social asspects in terms of coexistence and continuity, future .
Joe
what is the law of demand
Berlinda Reply
keep other thing constant, when the price increases demand decrease when the price decreases demand increases of the commodity.
sj
all things being equal,quantity demanded decrease as price increase and increase as price decrease
Seth
there's practial joke to it ..." the higher the demand ; scarcity, increase in production and drop in quality"... quite the controversy - for example China vs Europe, United States and we are all boxed up in between somewhere...
Joe
Other thing remain constant the low price of commodity the high quantity of commodity and vice versa is true
Baraka
Explain Effective demand
Anita Reply
What is effective demand
Anita
like Modi is in demand...best example of effective demand
Pranav
Don't get you
Anita
Anita you mean you don't get me or who?
Onyeking
level of demand that represents a real intention to purchase by people with the means to pay
Pranav
Difference between extinct and extici spicies
Amanpreet Reply
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Source:  OpenStax, The new-york historical society: lessons from one nonprofit's long struggle for survival. OpenStax CNX. Mar 28, 2008 Download for free at http://cnx.org/content/col10518/1.1
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