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The trouble with non-profits

aaronsw.com

71–80 of 85 posts

Re: The trouble with non-profits

#71
post #65
post #50

Earlier quoted context omitted.

>> Companies go bankrupt because the customer has the power to discontinue their patronage if they deliver a product or service poorly >This definitely happens to many kinds of non-profit! Unless I missed the sarcasm, it doesn't happen with charitable non-profits. They die when funding dries up, and since their customers don't provide funding, their customers have little/no effect on their survival. Yes, a charity ca…

since their customers don't provide funding That depends on your point of view. I'd argue that the people supplying the funding are the customers and that the work they do and people they help is the service they provide. So if their customers aren't happy with the quality of the service they'll take their money somewhere else, exactly like in the for profit case.

The problem is the customers of nonprofits often cannot measure the results themselves.

If McDonald's serves me a burger that is inedible, I know about it immediately and can stop patronizing McD's.

If Burgers4Africa distributes inedible burgers in Somalia, how do I know about it?

Re: The trouble with non-profits

#72
post #65
post #50

Earlier quoted context omitted.

>> Companies go bankrupt because the customer has the power to discontinue their patronage if they deliver a product or service poorly >This definitely happens to many kinds of non-profit! Unless I missed the sarcasm, it doesn't happen with charitable non-profits. They die when funding dries up, and since their customers don't provide funding, their customers have little/no effect on their survival. Yes, a charity ca…

since their customers don't provide funding That depends on your point of view. I'd argue that the people supplying the funding are the customers and that the work they do and people they help is the service they provide. So if their customers aren't happy with the quality of the service they'll take their money somewhere else, exactly like in the for profit case.

> I'd argue that the people supplying the funding are the customers

That definition is inconsistent with 'There can be something like a marketplace where the "customer" pays not with currency, but with their time.'

Charities, almost by definition, provide products/services to folks who can't afford the full cost of said products/services so the charity gets money from elsewhere.

Note that not all non-profits are charities.

Re: The trouble with non-profits

#73
post #66

"But it does mean that if you’re involved in nonprofits (or predictions), you need to be much more careful about making sure you’re doing a good job. Unfortunately, few nonprofits do that." Oh really? So he can cite research that says, for example, that only x% (where x His assertion may be true. But just throwing this out there with absolutely nothing to back it up, in a blog post titled "The Trouble With Nonprofits…

I've worked at two social ventures that had non-profits as clients (Web Networks, and most recently Urbantastic.com). There emphatically is something wrong with non-profits. Just because there are some excellent ones (Sturgeon's law applies) doesn't mean that the field at large isn't ill. An anecdote: we had a meeting with a guy who worked at a large company with a philanthropic streak. They provided, free of charge,…

I'm the "tech guy" (ie, code monkey) at Givology, and boy could we use some of your givers. We don't have a fancy website (since it's basically composed of my spare time), but the concept is to allocate money to specific students or projects (similar to Kiva and Global Giving). This is the first I've heard of Urbantastic, and it sounds like you've got the opposite problem we have; we have a lot of students and projects that we can put up on the site, but not a lot of donors.

Re: The trouble with non-profits

#74
post #65

Earlier quoted context omitted.

since their customers don't provide funding That depends on your point of view. I'd argue that the people supplying the funding are the customers and that the work they do and people they help is the service they provide. So if their customers aren't happy with the quality of the service they'll take their money somewhere else, exactly like in the for profit case.

The problem is the customers of nonprofits often cannot measure the results themselves. If McDonald's serves me a burger that is inedible, I know about it immediately and can stop patronizing McD's. If Burgers4Africa distributes inedible burgers in Somalia, how do I know about it?

My point is that often the customers can measure the results. The article is worded as if this applies to all non-profits.

Re: The trouble with non-profits

#76
post #54

Earlier quoted context omitted.

Did you really ask "is there any value in leading a moral life if it doesn't pay off financially?" Non-profits do not actually aim at financial gain (duh!), so measuring their success in monetary term is an error of categories. Of course it is difficult to assess success of an endeavour like that, and Aaron is right in raising awarness for these difficulties, but forcing an inappropriate kind of measurement (did your…

There are many reasons to do things other than money, but when you are dealing with people that you don't personally or directly know the fact that they are willing to pay for your services is basically the only real signal you have as to whether you are benefiting them. And if you are not making more doing this (for a combination of monetary and non-monetary benefits) than you could something else, then you need to…

As Friedman put it in "Machinery of Freedom", there are basically only three ways to work with others - love or shared goals, free exchange, or coercion.

Re: The trouble with non-profits

#77
post #66

"But it does mean that if you’re involved in nonprofits (or predictions), you need to be much more careful about making sure you’re doing a good job. Unfortunately, few nonprofits do that." Oh really? So he can cite research that says, for example, that only x% (where x His assertion may be true. But just throwing this out there with absolutely nothing to back it up, in a blog post titled "The Trouble With Nonprofits…

I've worked at two social ventures that had non-profits as clients (Web Networks, and most recently Urbantastic.com). There emphatically is something wrong with non-profits. Just because there are some excellent ones (Sturgeon's law applies) doesn't mean that the field at large isn't ill. An anecdote: we had a meeting with a guy who worked at a large company with a philanthropic streak. They provided, free of charge,…

What's the scoop with Urbantastic? Are you still working there? Drop me an e-mail if you could. Have questions.

Re: The trouble with non-profits

#78
post #67

"But it does mean that if you’re involved in nonprofits (or predictions), you need to be much more careful about making sure you’re doing a good job. Unfortunately, few nonprofits do that." Oh really? So he can cite research that says, for example, that only x% (where x His assertion may be true. But just throwing this out there with absolutely nothing to back it up, in a blog post titled "The Trouble With Nonprofits…

I'd like to hear you name the nonprofit and some of the metrics they use; it'd be great to be able to share good examples.

I'd rather not post the name publicly, but I'd be happy to talk more with you offline if you're interested. oscillations at gmail.

Re: The trouble with non-profits

#79
post #39
post #31

Earlier quoted context omitted.

Fuck that noise -- if you'd have even bothered to google their name, you'd have found that Givewell are total scumbags: http://metatalk.metafilter.com/15547/GiveWell-or-Give-em-Hel... Summaries: http://mssv.net/wiki/index.php/Givewell They got caught out because they were blatantly astroturfing for themselves and slagging 'competing' charities all over the web. Then it turns out that even by their own generous accoun…

You would expect that any organisation doing this kind of work would attract criticism. There is a taboo against harming a charities ability to raise funds. Do you know of any organisation doing similar but better?

There's http://www.charitynavigator.org/, and the arguments against: http://tacticalphilanthropy.com/2007/11/charity-navigator%E2...
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