Giving Compass' Take:

• Nonprofit Forbes Council offers 10 of the biggest myths about nonprofit work and explains why these assumptions are false. 

• How can busting nonprofit myths help donors understand more about the social sector in general and inform philanthropy?

• Learn more about myths regarding nonprofit accountability.

 

  1. Nonprofits Have Second-Rate Leaders It takes extraordinary leadership to run a nonprofit. We have to use only a small portion of the funds raised to run the business.
  2. Starting And Running A Nonprofit Is Easy The regulations and reporting in a nonprofit are just as challenging as a for-profit. The lack of initial brand recognition makes it more difficult to raise money as well.
  3. Nonprofits Don't Need To Make A Profit  I began using "not-for-profit" several years ago because while profit is not the primary focus of our mission-driven work, it is critical that nonprofits/not-for-profits are run extremely well so that they can be sustainable.
  4. It Is Just A Tax Status Nonprofits are a fast-growing sector of the economy and many that support and champion important causes are also very financially successful organizations.
  5. Nonprofits Are Not Metrics-Driven The only difference is that success is measured through revenue in for-profits while the metrics for nonprofits will vary by the mission and service provided.
  6. Donations Are The Only Source Of Funding Nonprofits depend on the support of generous benefactors. However, nonprofit leaders should not be 100% reliant on charitable donations to sustain their organization’s work.
  7. Nonprofits Are Simple ‘Do-Gooders’ They use data to inform, listen to stakeholders, skillfully leverage community assets and design bold solutions to address a community's greatest challenges or unmet needs.
  8. A Nonprofit’s Sole Focus Is Alleviating Suffering Less understood is the capacity for philanthropic collaboration to address the causes of suffering, namely lack of economic opportunity.
  9. Nonprofit Services Are Free For years, I have battled the assumption that services provided through our nonprofit are free. Nothing is free and someone is paying as a service might be funded through a local foundation or a fundraiser.
  10. Nonprofit Workers Are So Self-Sacrificing Giving up my business career to help mothers and children was actually a huge win for me.

Read the full article about myths about nonprofit work from Forbes Nonprofit Council at Forbes.