Category: News

I find it cathartic to go back to basics. It reminds me why something is important. It centers me. So, let’s explore the question: Why does the nonprofit sector in the United States look the way it does?

First, a little clarification on what it means to be a nonprofit. A nonprofit organization is one that is organized for the purpose of improving public welfare. A nonprofit is run much the same way as a for-profit. The term “nonprofit‡” refers to how the organization handles its excess revenue. Instead of being distributed among executives or shareholders (as in a for-profit business), profits are reinvested into the organization. This could mean expanding programs to serve more clients, buying new equipment or supplies, creating an operating reserve, or any other method of improving its positive impact on society. So: a nonprofit serves the public good and uses any extra money to further its mission.

As much as we all disdain this painful and challenging year, maybe it’s important that we look at what we’ve learned and what’s been good. Wouldn’t want to waste a hard-earned lesson!