The charities have definitely felt the effects of the financial crisis and continued recession experiencing a drop in giving for the first time in decades. With tighter budgets to work with, nonprofit organizations need more strategies than ever when allocating funds.

In this edition of Smith Business Close-Up with the University of Maryland’s Robert H. Smith School of Business, S. Raghu Raghavan, professor of Management Science, discusses how nonprofits can be systematic when allocating budgets.