Everyone in the sector–no kidding, everyone!–should read this Nonprofit Quarterly piece by Clara Miller of the Nonprofit Finance Fund about the practices most likely to make nonprofits vulnerable to financial disaster. Pay particular attention to Ms. Miller’s skepticism about the value of owning one’s own building.
The Nonprofiteer has argued for years that the likelihood of a building’s being a good investment is significantly smaller than the likelihood of its being a money pit, particularly for arts organizations who make over-optimistic estimates of their likely rental revenue. But now someone who actually knows what she’s talking about is saying the same thing.
So listen up! Please.