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In the last decade, Montclair's debt has more than doubled, to $250 million, as it used short-term, low-interest loans to pay many operating expenses as well as to build or refurbish schools and athletic fields.
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Under accounting rules, capital costs can be charged as expenses in small percentages over many years, while operating expenses must be declared in the year they occurred.
The implication is clear: in many instances, corporations recast operating expenses as nonrecurring charges and, to a lesser extent, recast nonrecurring income as operating revenue.
Many of these projects have been fueled by donors, even as individual and corporate contributions for annual operating expenses at many institutions have remained level or in a few cases declined.
The cost of keeping so many in jail -- the operating expenses for state prisons alone is around $30 billion a year -- has created bipartisan concern.
Fees: Many 401(k) plans have operating expenses, trading costs and other fees.
Unlike many foundations, Hutton Parker makes most of these grants for operating expenses - not new programs.
Sue Dietrich, a vice president of the Chancellor's Parent Advisory Council, said that at many schools, raffles had become a main source of PTA operating expenses for the year.
It's largely because donating toward operating expenses isn't considered emotionally fulfilling, and many donors simply don't understand the difference that "smart overhead" can make.
The museum said that like many nonprofit institutions, it limits its use of the endowment for operating expenses to 5 percent of the fund's value.
The trustees claim that the foundation is on the verge of bankruptcy, unable to meet operating expenses given changing economic circumstances and Dr. Barnes's many restrictions.
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