The NonProfit Times - The Leading Business Publication For Nonprofit Management

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January 28, 2008

Expenses Continue To Put Stress On Nonprofit Budgets
By Mark Hrywna

Nonprofits were hit with increases in expenses last year that were two and three times the rate of inflation,
driven by a hike in the federal minimum wage and the ever increasing cost to raise a dollar.

The cost of raising money -- usually through capital campaigns -- contributed to rising expenses as
charities look to develop new, alternative revenue streams in the coming years.
The federal rate of inflation was more than 4.1 percent last year and about 3.25 percent in 2006.

The 14-percent hike in the federal minimum wage that went into effect in July automatically
raised labor costs for nonprofits, especially those involved in retail operations, where employees
usually earn at or around the minimum wage...MORE