Nonprofit Misconception: Sense of Entitlement

The Albany Times Union featured the following blog post by Wally Altes from Wally’s Bottom Line, who is the former president of the Albany-Colonie Regional Chamber of Commerce. His post, titled The Non-Profit Shake-out, highlights some growing trends in the sector, but also puts forward a problematic misconception with the following statement: Oh, and one other thing–maybe this will help non-profit management get past its highly developed sense of entitlement. Read his blog post below and New York Council of Nonprofits CEO Doug Sauer's response posted on his blog.

Wally's Bottom Line:
A number of months ago I wrote about the difficulties I felt non-profits would be facing as the economic situation worsened. I suggested that many would not survive and that consolidations, mergers and alliances would be built among the surviving non-profits.


This past week we received letters from two non-profits which we have supported in the past. One non-profit suggested that it might be only weeks from closing its doors. The other indicated that it wanted to raise an amount well into six figures within the next three months. Obviously, both requested money. Neither of these organizations have yet had their financial difficulties covered in the press. But there have been other non-profits such as Gilda’s Club whose difficulties have recived press coverage.

I have long felt that there are simply too many non-profits. Many have been created which serve small niches and survive because of a limited but devoted following of contributors and volunteers. Their survival is most in danger. But non-profits which cater to a larger base are also feeling the financial squeeze. They typically have higher operating costs and usually have a significant amount of ‘earned income’ but it is inadequate to insure survival.


We are about to hit a period of donor fatigue; all non-profits will be asking for money. Contributors are feeling much poorer than they did a year ago and will not support as many organizations as formerly nor will they be as generous when they choose to support one. There will be a shake-out; the only question is how painful will it be. Frankly, a shake-out will be good. Let the Darwinian approach reach the non-profits as well as other segments of society. Oh, and one other thing–maybe this will help non-profit management get past its highly developed sense of entitlement.

The following is NYCON CEO Doug Sauer's response posted on the blog:
The New York Council of Nonprofits, Inc. is providing leadership throughout the state in encouraging nonprofits to restructure and assisting with the process. It is unfortunate that Wally’s valid point about the need for some nonprofits to consolidate, merge and build alliances during these tough times became badly tainted at the end with his Darwinian prejudice toward how society should function (including I assume how the poor and vulnerable among us should be treated) and his caustic attitude toward nonprofit leaders.


What is interesting is the context in which he presents his remarks. It is essentially about him as a fatigued donor who is bemoaning the difficulty in making charitable choices when there are many requests and when organizational survival may be at stake. He sees many nonprofits existing because of “niches”, donors and volunteers. Left out of his equation, is mission and need.
Wally is right in saying that many contributors have less to give. What he misses is the fact that in difficult times, many donors step up their giving; reaching deeper into their pockets for the charities and religious organizations that truly care about and touch their lives. It may surprise Wally to know that this is particularly true among the less affluent, who donate a higher proportion of their income than people of higher means. And, many do so without taking charitable tax deductions. The average donor also does not seek recognition through serving on an honorary committee, receiving a plague, or having their picture taken in the Social Scene section of the Times Union.

With respect to the “sense of entitlement” that he thinks nonprofit leaders possess, he fails to recognize the fact that the vast majority of professionals in the sector devote their lives to service for substantially less income and benefits than what they would make in the private or government sector.

The message Wally sends is the wrong one and overwhelmingly negative. This is a time for community leaders to encourage greater giving and as President Obama has suggested, to become actively involved with community nonprofits. Time to step up, not step down.