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Sidenote here: A lot of charities have serious problems with out-of-scale donations like this. They often encourage the organisation to grow in a way which is unsustainable and can have a damaging downside once the capital is exhausted.



Can you enlighten why this is the case?

Especially for non-for-profits I don't think this should be a problem, as they can merely just save the money.

On the contrary I see that quite some non-profits run on an endowment model, where these money would basically just grow the endowment.


Because they'll hire sometime as a way to spend that 300k, or maybe let their server expenses grow in a way that's not cost effective, and then after a while the money runs out and there's a panic.

I don't think it's a huge issue but it's something they'll have to think about


The classic example is that they make a capital purchase, like a building, for which they can't afford the ongoing maintenance.




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