Ask someone on the street if there are too many nonprofits addressing the same causes. Most likely, you’ll get a resounding “yes.”
When there’s a crisis, folks are confused as to which relief agency they should give their money. When a friend is diagnosed with cancer, they aren’t sure which organization will make the best use of their donation.
This confusion leads to “drop in the bucket” donations. Folks want to at least doing something, but don’t want to risk throwing their hard-earned money into a black hole.
This behavior stifles the entire nonprofit sector. Folks don’t trust their philanthropy will be effectively stewarded, so don’t give as much as they could. Even worse, folks with track records of investing — philanthropic (aka “social”) entrepreneurs — sit on the sidelines waiting. Waiting for the social benefit sector to do something that, up until now, it has not done well. What?Continue Reading