[From: https://nonprofitquarterly.org/]

“As a nonprofit grows, its unrestricted funding almost always falls as a fraction of its total budget (even if it grows in absolute terms) while the proportion of cost-minus funding goes up. From this perspective, scaling makes it harder to cover full costs. At the same time, though it’s impolite to say, larger nonprofits are often more efficient, which makes it easier to cover full costs.”

Read the full article here.