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To the extent that nonprofits are feeling the heat to appear more efficient in many ways, theres concerns that its making them less effective, so the desire to appear more efficient makes you actually less effective. Some of our research has borne that out that the fact that nonprofits are evaluated based on what percentage of the money goes towards the cause, it really puts in a position where they have to put a lot of money towards the cause. Kind of the cheapest most efficient way to put a lot of money towards the cause is to make a lot of grants to other organizations. As an individual, if I have leftover clothing I can donate it to charity and I can get a tax deduction for it. If a corporation has leftover clothing that they produced, they get a tax deduction no matter what they do it, even if they throw it away because its a business expense. Congress essentially said we want to get some incentive for this leftover inventory to get donated to charity as opposed to getting thr
