Some chain of links led me to this blog article about how inefficiently aid money is allocated.
It reminded me of a question I was wondering about earlier in the week: How do non-profits allocate their resources if they're not trying to maximize profits. What are they trying to maximize? Productivity in the form of goods or services provided, or maybe revenue in terms of donations received. What about something else like maximizing notoriety with keeping their status as a non-profit as the constraint? Probably not payment to their employees since we don't hear about Wallstreet style pay scandals from places like Acorn, and the non-profit sector is notorious for low pay. What if they don't maximize, i.e. they're not at the production possibility frontier?
I'd imagine there is some of everything going on, so another question is whether they're randomly distributed across all forms of non-profit or do certain industries congregate around certain forms of maximization?
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