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	<title>Today I Cried (IT) &#187; funding</title>
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	<description>Non-profit IT is technical social work</description>
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		<title>Restricted/Unrestricted</title>
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		<pubDate>Sat, 30 Dec 2006 05:30:00 +0000</pubDate>
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				<category><![CDATA[funding]]></category>
		<category><![CDATA[non-profit technology]]></category>
		<category><![CDATA[nptech]]></category>

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		<description><![CDATA[My use of the term &#8220;restricted/unrestricted&#8221; in the previous post actually has to do with the way money within a non-profit is allocated. Often when someone donates money or a grant is provided, the money is restricted to a certain &#8230; <a href="http://www.todayicried.com/it/2006/12/restrictedunrestricted.html">Continue reading <span class="meta-nav">&#8594;</span></a>]]></description>
			<content:encoded><![CDATA[<p>My use of the term &#8220;restricted/unrestricted&#8221; in the previous post actually has to do with the way money within a non-profit is allocated. Often when someone donates money or a grant is provided, the money is restricted to a certain initiative, which means it cannot go to administrative matters. For that non-profits depend on unrestricted funding, which is what often pays for computers, salaries, and other business matters.</p>
<p>This is one key difference between non-profits and for-profits. For-profits establish budgets for departments and projects and expenditures are generally determined internally. Also, deficits from cost overruns are compensated for differently. For-profits can either shift money around easier, push sales, etc. The point is that a for-profit may have more options to fund projects and may not need to make due as often as a non-profit might. </p>
<p>I certainly don&#8217;t believe that for-profit IT departments have endless pockets. I&#8217;ve worked in for-profit and know how many administrators feel there should be a tangible cost-savings, even profitability, from the efforts of their IT departments. Some of this is unrealistic and forces IT departments to stretch money in ways that don&#8217;t necessarily make sense. Still the level of control over the money within the organization, as well as the source of that funding, is vastly different between the two sectors. That&#8217;s not to say that the non-profit is solely at the mercy of the donor or grantor, nor am I saying there aren&#8217;t options in the face of cost overruns, but these differences are factors that impact non-profit technology decision-making.</p>
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