The 10 Problems With Big Nonprofits

  • Their primary purpose is to continue to exist forever. But why should they exist forever? Nonprofits are created to solve specific problems. Once those problems go away, so should the relevant nonprofits.
  • Their secondary purpose is to perpetuate the jobs of the people who run them. This often leads to sinecure proliferation.
  • They tend to hire for senior positions only from the upper-middle-classes or above. Among low-level positions, they tend to hire from the middle as opposed to lower-classes.
  • They tend to hire based on connections and relationships, as opposed to merit.
  • They tend to be concentrated around Washington DC, New York, and other extremely expensive major metropolises. Thus, most of their potential employees can’t afford to live close to where they are headquartered, creating an economic glass ceiling.
  • They exist to help billionaires and multi-millionaires excise their guilt (and also provide tax breaks)
  • Because they benefit from lower income taxes on the wealthy, they support that general public policy bias
  • They are obsessed with legal liability and risk management which prevents them from innovating new ways to be charitable
  • They compete aggressively with local, “startup” nonprofits for funds from major philanthropic and grantmaking organizations
  • Because they are allied with and dependent on billionaire charity, they tend to back establishment policy and politics

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