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Should nonprofits make a profit?
How many times have we seen the news stories where certain nonprofit leaders are blasted for making too much money? Goodwill, anyone? How about the Salvation Army? The point of this video is not to down those organizations, because they do important work, and it takes education and buttloads of experience to run a multi-million dollar organization.
The problem with that it people get in their feelings, and think that because those small number of large organizations, pay their CEOs too much (in their opinion), then all nonprofits have to operate like they’re constantly in the poor house?
If I choose to give my money to your organization, shouldn’t I expect that money to have an impact if I give it to a well-functioning nonprofit. Well you can’t function fell without resources. So you SHOULD expect nonprofits who get your support to make a profit, so they can be intentional about how to make sure they’re around for the long haul. Nonprofits should be intentional about creating cash reserves (which is only going to happen when they make a profit or if they intentionally put away money). I want to know nonprofits are going to survive when the market crashes, or when a global pandemic happens (sound familiar). Let’s stop operating from a place of lack and expecting that nonprofits can’t have anything.
I completely disagree! I want my nonprofit to retain high quality staff, invest in training and technology so they can stay relevant. Why would I want to restrict them?
Watch this video to hear more about why I believe nonprofits must make a profit and they shouldn’t be ashamed to.