A charity leader in Seattle has assembled a short video laying out the impact of the nonprofit world, a film that he believes can help other nonprofit executives spread the word about philanthropy’s economic value.
The three-minute, 40-second video, “Know Your Sector,” has been posted on YouTube. Among the nuggets of information it contains: the fact that about one in 10 American workers is a nonprofit employee (compared with the one in 57 workers who waits tables).
“My hope is that it will be a free resource, for donors, for board members, for nonprofit employees, and volunteers to understand the power of our sector,” says Ben Klasky, executive director of IslandWood, a nonprofit outdoor learning center on Bainbridge Island, Wash., who created the video for a class he teaches on nonprofit management “My hope is that it’ll go viral and that people will realize that, because so many people are involved with nonprofits, it’s a powerful part of our economy, and it’s doing a lot of important work.”
Over his five years as an instructor at the University of Washington, Mr. Klasky says he’s been surprised at how little his graduate students know about the very field they’re studying.
“They’re just surprised to hear of the scale” of the nonprofit world, he says. “Like many people in society, they think that nonprofits tend to be these small, almost Ma and Pa operations that are taking care of critical needs at a local level and forget that the sector includes very large institutions and is actually a huge part of our economy.”
Students also tend not to comprehend how diverse nonprofit organizations are, he says, another message he tried to convey in “Know Your Sector,” which points out that groups that promote and oppose legalized abortion, for instance, coexist under the nonprofit umbrella.
For the video, Mr. Klasky—who once advised Fortune 500 companies while working at Deloitte Consulting—gathered statistics from such sources as Independent Sector, the Bureau of Labor Statistics, and the annual private-philanthropy tally “Giving USA.” (Among the most eye-opening: that the $1.1-trillion charities take in annually from donations and revenue is more than the entire economies of Saudi Arabia and Sweden combined.)
A consultant helped Mr. Klasky present the data by assembling photography, graphics, rapidly moving text, and a stately but thumping electronic-music score.
One potential audience for the feature, Mr. Klasky suggests, is charity boards. As an executive director who is deeply involved in fund raising, he says, “I’m constantly educating my board about where money comes from and where it goes. I think most people believe, for example, that most money comes from foundations and corporations, when the reality is that the majority comes from individuals”—83 percent of it, in fact, reports “Know Your Sector.”
Mr. Klasky adds, “It’s not uncommon for a board member to say, ‘Oh, we really need to be focusing more on foundations; we could raise a lot more money from foundations’ when probably your best bet is to start focusing more on individuals in fund raising.”







6 Responses to All About Philanthropy in Less Than Four Minutes
philanthropyguy - September 3, 2010 at 3:14 pm
Heather – thanks for the flattering blog about my video “Know Your Sector.” For readers interested in the full bibliography citing where the video’s statistics came from, please go to: http://philanthropyreports.org/blog.html. Thanks, Ben Klasky
cat101153 - September 7, 2010 at 5:19 pm
This video is inspiring and informative. I’m proud to work for an educational non-profit.
wbohan - September 8, 2010 at 5:03 pm
Nice job — but the grammatically correct title should be: All About Philanthropy in FEWER than Four Minutes.
russychron - September 14, 2010 at 1:52 pm
Excellent concept. I have covered the same type of material in Powerpoint presentations. The video, while very polished and professional goes too fast for viewers to grasp its impact. It needs to be accompanied by notes or slowed down. It is a very useful tool. Congratulations to its creators. ThanksRussy D. Sumariwalla
mmdamen0924 - September 21, 2010 at 10:03 am
Finally! A way to demonstrate the impact of philanthropy as an engine that can drive the greater good and take the lead in collaborating with corporate and government sectors to create community. There is just enough information packed into a short time frame to drive the point home – an “aha” moment for a viewer. Kudos to Mr. Klasky. Margaret May Damen CFP, CLU, ChFC
argon - September 21, 2010 at 1:46 pm
Apples and oranges. The video is somewhat misleading, from the perspective of the everyday work of a “charity,” when compared to a “nonprofit.”Hospitals, of course, are nonprofits, as are universities. The support staffs of these sorts of institutions drives the worker ratio way up. Saying that 1 in 10 Americans work for nonprofits and 1 in 244 are lawyers may be true enough. However, a more appropriate comparison might be doctors to lawyers. In the legal profession, how many Americans work as assistants, secretaries, or file clerks? How many paid law firm employees take out the trash or mop the floor? These are vital jobs in hospitals, and I think that lawyers would also miss having their wastebasket emptied or their carpet vacuumed. One cannot compare an industry (nonprofits) to a job (lawyer or waiter).See “Confounding” in Wikipedia. Briefly: “In statistics, a confounding variable…is an extraneous variable in a statistical model that correlates (positively or negatively) with both the dependent variable and the independent variable.” Stating that nonprofits receive only 27% of annual income from donations, and that 73% comes from sources such as tuition and hospital patient fees skews the outcome significantly, as only universities and hospitals are benefitting from those sources. It is incorrect to consider that data point in correlation with charities that house the homeless, feed the hungry, or clothe the naked.Also, I would argue that, while United Way is a nonprofit, it is not a charity. United Way is a funder of charities. It is, in effect, a pass-through organization for thousands upon thousands of charities.This is a well put-together video, and therein lies the danger. The 30,000 foot view of nonprofit income, income sources, and relative workforce size does not impart the detail of the reality of fundraising and staffing issues faced by charities delivering human services every day.