24/100 Things we’ve learned: “Take no more than your fair share”

Posted by Gayle Gifford on August 24, 2009 in 100 Things We've Learned, Big ideas, Fundraising

“Take no more than your fair share.”

That was one definition of sustainability offered by Margo Flood, Executive Director of the Environmenal Leadership Center and Chief Sustainability Official at the new student plenary at Warren Wilson College last week. (One of our sons transferred there this year).

If you’ve been following this blog, you’ll know that one of my great concerns is the concentration of the resources of the nonprofit sector in the hands of so few organizations. Fewer than 6% of US institutions hold more than 80% of the income and assets of the sector.

I’ve asked the question before “How much is enough? Philanthropic greed”

That’s why Ms. Flood’s definition resonated so strongly with me. What would happen if all philanthropic institutions held themselves to the standard of taking no more than their fair share. Perhaps more philanthropy, bequests, grants and government funding would flow to organizations that are just as worthy (maybe even more so) but without the class connections and fund development capacity that accrue to many of the largest institutions.

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Are most nonprofits in bad financial shape?

Posted by Gayle Gifford on June 16, 2008 in Big ideas, Research

The Boston Foundation released a study of Massachusetts Nonprofits called Passion and Purpose: Raising the Fiscal Fitness Bar for Massachusetts Nonprofits.

The report is worth looking at, even if you aren’t from the Bay State, as it provides a very intriguing analysis of nonprofits by size and business model. The report categorizes the sector into three segments based on budget size and “value proposition” as follows:

Grassroots organizations create civil society through grassroots action and volunteerism. They have budgets below $250,000.

Safety net nonprofits provide a societal benefit and a “safety net” through the delivery of services and quality of life contributions. They have budgets between $250,000 and $50 million.

Economic Engines provide large scale services and contributions to the state’s economic health and competitiveness. These are the largest institutions, primarily universities and hospitals (60%), that represent just 2% of nonprofit numbers but 80% of assets and 72% of their spending. (GG: It’s interesting to me that the description of these economic engines says nothing about their charitable purpose. Why is that?)

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