Perspectives

Philanthropy New York Interviews Fred Ali on the Importance of Full Cost Recovery for Nonprofits

With the high-profile collapse of FEGS last year, New York’s nonprofit sector has been seriously investigating and documenting what went wrong, with an eye toward changing harmful funding practices that contributed to its, and others’ demise. Nonprofit and foundation leaders in New York are now actively working on issues such as full-cost budgeting, the OMB Uniform Guidance mandates regarding indirect costs, funding for the increased minimum wage and a host of other interrelated topics.

On April 6, Fred Ali, president and CEO of the Weingart Foundation, was interviewed by Doug Bauer, executive director of The Clark Foundation, as part of a Philanthropy New York program titled "Learning from LA - Is Our Sister City Supporting Nonprofits Better?" Bauer recently participated in a commission that investigated the collapse of FEGS and issued a report documenting the reasons for the collapse and lesson learned. The process included canvassing other cities around the country for examples of healthier relationships between nonprofits and government, and Bauer came to the conclusion that Los Angeles stood out from the rest in advancing policies that will move the local nonprofit sector toward greater sustainability.

In a wide-ranging conversation, the interview with Fred Ali explores:

  • How funders can help their grantees increase their long-term financial stability and effectiveness
  • How funders are effectively advocating for “full cost recovery” for nonprofit organizations
  • What are the major differences in the nonprofit environment in California and New York, and how can we learn from each other
  • The latest in nonprofit capacity building

Click on the image below for a two-minute excerpt from the interview.


To view the full 1 hour 40 minute interview, click on the image below.