January 27, 2008
Does America Need More Charities?
Does the United States have too many nonprofit groups?
Rosetta Thurman, a nonprofit consultant who writes the blog Perspectives From the Pipeline, argues that the quality of work done by charitable organizations is more important than the quantity.
She writes that, “Too many people want to start their own organizations without thinking of the consequences.”
Citing tight competition for donors and a “war for talent and quality employees,” she believes that organizations operating in communities with similar missions may only be hurting each other by duplicating resources. “Now you know I’m not saying nonprofits need to go away,” she writes. “I’m just saying let’s not start any more until we can sustain and maximize the impact of the ones we’ve already got.”
Taking it one step further, Ms. Thurman offers “five reasons you shouldn’t start your own nonprofit.”
She reminds entrepreneurs to remember that “even if you think your idea for social change is the best ever in the world, there is at least a handful of organizations already doing this work.”
So what is left for the hopeful social entrepreneur? Find a nonprofit organization in your community that is already working on the problem you want to solve and “link up with them to be an employee or volunteer, or join their board,” Ms. Thurman pleads.
What do you think? Should people be discouraged from starting nonprofit groups? Click on the comments link below and share your thoughts.
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I fully agree with Ms. Thurman and am working on this issue right now in the blog “All Things Fundraising” where I am taking apart this issue step by step to understand how we could set up a process of evaluating new charity startups so they don’t get into fundraising problems down the road. In the course of this type of evaluation, start-up founders have opportunity to seriously evaluate whether they should continue with their new charity or perhaps would be well advised to get with an existing one for just exactly the reasons Ms. Thurman mentions. My blog is at this URL, if your interested: http://allthingsfundraising.blogspot.com
— John Fike Jan 28, 08:02 AM #
I also agree with Ms. Thurman – especially with her five points, and especially with #3 and #5. Not only does it water down capacity in the sector, it also discourages collaboration between too-similar organizations jealously guarding stakeholders.
— Chris Casquilho Jan 28, 02:26 PM #
Ms. Thurman’s last reason presented may be the most important one of the group. All too many nonprofit organizations new and existing forget that they are running a business. That business needs to have a plan, a mission, a market and a service or product that is needed by the community. There needs to be a viable revenue stream to sustain the operation. Finally one needs to understand that in adopting a nonprofit status you not only agree to comply with all normal business regulations – after all you become an incorporated business before the I.R.S bestows a nonprofit tax status on your organization – you accept a special status to be accountable to those who provide you resources and support your mission. If anything should you choose to become a nonprofit you have chosen a path with significant regulations and in today’s market one can anticipate that those may increase.
— John C McGee Jan 28, 04:10 PM #
I agree wholeheartedly. We have experienced a rapid growth in the number of charitable organizations out there; this sets the sector up for a period of rapid consolidation. My feat is that many non-profits will refuse to admit that they are going out of business, and will take their donor relationships with them to the grave.
I firmly believe that the same amount of money given to half as many non-profits would likely yield a far greater return than what we have today.
— Jeremy Gregg, Central Dallas Ministries Jan 28, 11:22 PM #
Sorry, but innovation is part of the human blueprint. So what if 50 nonprofits are already doing what I propose doing? Maybe I’m the one capable of doing it best. And maybe, just maybe, the competition for dollars and talent will result in a stronger sector overall, with the less capable nonprofits folding up their tents or consolidating.
— Tom Durso | The 501(c) Files Jan 29, 10:17 AM #