{"id":2454,"date":"2007-11-05T17:47:32","date_gmt":"2007-11-05T21:47:32","guid":{"rendered":"http:\/\/spacingtoronto.ca\/?p=2454"},"modified":"2013-01-21T13:15:32","modified_gmt":"2013-01-21T18:15:32","slug":"we-cant-afford-to-do-business-this-way","status":"publish","type":"post","link":"https:\/\/spacing.ca\/toronto\/2007\/11\/05\/we-cant-afford-to-do-business-this-way\/","title":{"rendered":"“We can’t afford to do business this way”"},"content":{"rendered":"

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Toronto-based think tank the Wellesley Institute<\/a> has published a landmark report<\/a> on the administrative burden felt by community organizations that rely on government, private and third sector grants to fund their work. The name of the report, \u00e2\u20ac\u0153We can’t afford to do business this way,\u00e2\u20ac\u009d sums up the findings quite nicely.<\/p>\n

Noting a number of highly publicised funding scandals in the public sector, the Wellesley Institute says that the not-for-profit sector has been hit hardest through strict reporting requirements meant to create greater accountability in the distribution of tax and donor dollars. The cost of never-ending paperwork is, according to the report, approximately 11% of the average organization’s financial resources and 44% of its staff time.<\/p>\n

\u00e2\u20ac\u0153Community-based nonprofit organizations are believed by both funders and the Canadian public to be in closer touch and have better reach into their communities. They are seen as having less bureaucracy and are therefore more flexible and responsive than government or larger organizations could ever be. They are widely viewed as cost effective,\u00e2\u20ac\u009d says the report. \u00e2\u20ac\u0153The current grant process, however, works against these agency strengths and actively prevents agencies from effectively serving their communities and delivering effective, responsive services.\u00e2\u20ac\u009d<\/p>\n

Sitting on the board of directors of two small community-based organizations — one serving youth, the other homeless and socially isolated people — I can attest to the strain administrative requirements put on our already over-worked staff. While accountability is integral when we are working with tax dollars, there comes a point when more effort is being spent on administration than on service. I think we’re, generally speaking, at that point and this report confirms it.<\/p>\n

Another key gap in non-profit sector grants is that very, very few granters provide specific money to do administration, including administration of their own administrative requirements. Although it’s hard to justify creating any additional bureaucracy, this method of funding forces organizations to do creative — though legitimate — accounting. For example, paying for a bookkeeper is next to impossible to get funding for but necessary to ensure that accounting is done properly. With that reality, an organization may pay for the cost of a bookkeeper through small portions of several grants.<\/p>\n

We can’t afford to do business this way<\/em> makes many key findings in seven general areas. Findings include:<\/p>\n