The business plan model seems to be infecting all sectors of the nonprofit world. One of these is the merger, as groups with seemingly disparate missions combine their operations to cut administrative costs. This has become very common in the social service sector (drug/alcohol rehabilitation, transitional housing etc.), as government funding has been reduced and groups are forced to rely on corporate and foundation money.
The problem with this is, of course, that administrative costs tend to increase in the long run, as it takes more and more energy to co-ordinate the sometimes conflicting missions of the merged groups.
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The business plan model seems to be infecting all sectors of the nonprofit world. One of these is the merger, as groups with seemingly disparate missions combine their operations to cut administrative costs. This has become very common in the social service sector (drug/alcohol rehabilitation, transitional housing etc.), as government funding has been reduced and groups are forced to rely on corporate and foundation money.
The problem with this is, of course, that administrative costs tend to increase in the long run, as it takes more and more energy to co-ordinate the sometimes conflicting missions of the merged groups.
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