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The 80/20 rule helps nonprofits meet both giving and financial goals

A nonprofit typically starts out working hard to support its mission with a small budget and a lean team. But as the organization grows and takes on more employees and operating costs, it can be challenging to figure out how much money to dedicate to the cause versus how much to pour back into the organization’s operations.

The nonprofits best postured for long-term success are those that focus on smart financial planning at the outset by embracing the “80/20 Rule” — allocating approximately 80 percent of expenditures to program-related expenses and 20 percent to fundraising and general and administrative (G&A) expenses.

In the October 27, 2017, print edition of The Baltimore Business Journal, Jessica Kuhn, CPA, a manager in Ellin & Tucker’s Audit, Accounting, and Consulting Department, dives into what nonprofits can do to financially prepare for and manage growth.

To read the rest of the article, please visit The 80/20 rule helps nonprofits meet both giving and financial goals on The Baltimore Business Journal’s website (Subscription required).

For more information, please contact marketing@ellinandtucker.com


Jessica Kuhn HeadshotJESSICA KUHN, CPA, is a Manager in the Audit, Accounting and Consulting Department of Ellin & Tucker in Baltimore, MD, where she performs high-quality audit, financial reporting and advisory services for several not-for-profit organizations. Her knowledge of not-for-profit audit and accounting standards has helped grow the firm’s not-for-profit services group practice to more than 100 organizations in the Baltimore region. She can be reached at jkuhn@ellinandtucker.com.

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