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Opinion

Nonprofit Groups Shouldn’t Try to Act Like Businesses

June 24, 2004 | Read Time: 2 minutes

To the Editor:

Three cheers for Pablo Eisenberg’s excellent article “The Public Loses Out When Charities Become Too Businesslike” (Opinion, June 10).

It’s frustrating to constantly hear the ridiculous idea that “nonprofits should run more like businesses,” especially from the mouths of executives who work for one of the countless major corporations engaging in fraud or other criminal behavior. And when you hear such balderdash coming from nonprofit executives, it goes beyond frustrating and enters into the realm of Alice in Wonderland.

Business exists to make money and nonprofits exist to make the world a better place. The two philosophies are each valuable and important, but it’s simply foolish to believe that one set of practices can serve these different goals. Nonprofit executives used to know the difference.

Pandering to business donors’ egos for so long seems to have made nonprofits actually believe that the nonprofit sector is inferior. Have we forgotten our missions? Since when is it inferior to educate the young, heal the sick, exalt the spirit, feed the hungry, speak out on behalf of the less powerful, or (insert your mission here)? Since when is it more noble to artificially jack up the price of energy, lifesaving drugs, or any number of commodities, goods, and services just so that the top tier of the company can add more zeroes to their personal billion-dollar bank accounts?


Yes, most people in business are hard-working individuals who strive to give honest value for money received. I would say that is one statement that also applies to people who work in nonprofits. The problem comes when people interpret that statement to mean that charities should subordinate their principles to “the bottom line.”

Is a businesslike makeover of your charity really the best way to serve your constituency, your donors, and your community?

Lane Brooks
Director of Development
Public Citizen
Washington