15 Mistakes That Have Already Been Made for You

Mistake 6
Cutting revenue-producing programs to address a budget shortfall. A wise accountant serving as a new board member addressed a nonprofit’s $100,000 budget shortfall. He suggested actually spending more money on revenue-producing activities. He correctly noted that the direct-response (DR) program raised $3 for every $1 spent. Increasing the DR budget by $50,000 raises $150,000 — with a net of $100,000 to solve the revenue shortfall.

Mistake 7
Accepting watchdog standards. Don’t brag about your stars. Instead, teach donors to judge you by the impact of your programs, not by arbitrary — and often misleading — cost ratios.