Managing a nonprofit organization in the twenty-first century by Thomas Wolf

Author:Thomas Wolf
Language: eng
Format: epub
Publisher: A FIRESIDE BOOK
Published: 1999-07-15T00:00:00+00:00

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COMPTON HOSPITAL’S INVISIBLE EXPENSES

As an example of how a new activity almost invisibly seems to increase central administrative costs, consider the case of Compton Hospital, which decided to undertake a prenatal education program. Staff members costed out all anticipated expenditures connected with the new program. However, they forgot that the hospital published the Information Bulletin, in which each hospital class was given a one-page description. By adding the prenatal class, the hospital was required to add a page to a publication that was paid for out of its central administrative budget. It is crucial, as the costing process goes forward, that realistic overhead increases such as this are built into the budgets of new initiatives.

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