Nonprofit Capital
Though I do not subscribe to the theme that nonprofits universally need to “act more like business,” in one area I do think that the business world has a lot to teach – the sources and uses of capital. Use the word “capital” in a discussion about nonprofit finances and the majority of the participants will assume that the topic is buildings and a “capital campaign.” Business leaders know that they need capital for a range of distinct and important purposes including short-term working capital, permanent working capital, and long-term asset creation. (more…)