Most food banks, homeless shelters and other social services nonprofits constantly face hard decisions about how to use their limited funds. Should they spend as much as possible on meeting the immediate needs of people who need help? How much of their budget is appropriate to spend on new equipment, skilled managers and everything else required for an organization to thrive and endure?
To help nonprofits tackle this quandary, we teamed up with two other business professors, Arian Aflaki and Goker Aydin, to develop a mathematical model to guide nonprofits on how to divvy up their spending to optimize both current performance and future resilience through their spending priorities.
