Gregory, A.G., & Howard, D. (2009). The Nonprofit Starvation Cycle. Stanford Social Innovation Review, Fall 2009.
In this classic article, Gregory and Howard argue that funders have unrealistic expectations of the costs of running a nonprofit. Because nonprofits tend to underreport actual costs, funders’ unrealistic perceptions are reinforced, leading to a vicious cycle in which it is getting more and more difficult for nonprofits to fund their core operations. The Nonprofit Starvation Cycle has become a well-known term and a very influential idea.
