Non-Profit Organizations
By Kerby Anderson
Most successful non-profit organizations try to run with business world efficiency, but they are limited in many ways because of the funding models they must rely upon. Most of the men and women who serve on a board of trustees come from a business background, and they often cannot understand why the organization cannot be run just like a business.
Thomas Tierney recently tried to explain why non-profits often run differently from profit-making businesses. He used this thought experiment when he discovered that many CEOs of non-profits spend nearly half their time managing funding streams.
“Imagine if a typical CEO spent 2+ days a week with bankers, Wall Street analysts and venture capitalists. Now imagine that it took over 100 different sources to capitalize his business, and that none of them would ever commit to more than a single year’s funding. It would be like trying to drive from San Francisco to Boston on a gallon of gas at a time. You’d never be able to plan the fastest or most direct route and would always be looking for the next gas station.”
Thomas Tierney says that as he has “looked under the hood” of various non-profits. He has concluded that much of the balky performance is due to the donors. Often we give for personal reasons. If a family member dies of cancer, you are likely to give to the American Cancer Society. If your child made a commitment to Christ at a Christian camp, you are likely to support that camp or Christian ministry.
He also notes we often give to lots of organizations. “We need to avoid what I call ‘peanut butter philanthropy,’ spreading our resources too thin. We can’t save the world by giving one dollar to every worthwhile cause. We also need to invest in nonprofit infrastructure.”
All of this should not be an excuse for nonprofit organizations. They need to be effective and efficient. But they are different from businesses because of the funding models they rely upon.
Listen to this Viewpoint
Viewpoints
View All
Chokepoints
Most people know that the Strait of Hormuz is a strategic chokepoint. But many others that we forget about need protection.
Socialist Platform
Most Americans are not aware of what is in the platform for the Democratic Socialists of America.
Texas Tech’s Battle
Last November, the Texas Tech University system got a new chancellor, Brandon Creighton, who promised dramatic changes pertaining to academic freedom and woke, Marxist course content.
Take Action
View All
Support the Safeguarding Women from Chemical Abortion Act
The abortion pill harms women and kills unborn children. Congress must act.
Contact Congress About the Prevent Government Shutdowns Act of 2025
Congress needs to get the job done, not run away from work.