In my tenure as the leader of a community based organization in Southern California, I have seen dozens of small agencies go out of business. Some of these charities performed amazing services for the most needy people in our society. They provided shelter for people living on the streets, counselling for women fleeing abuse, food for the hungry, and support for people lost. They were supposed to be easy causes to raise money for.
One by one, however, these heart-felt, mission-driven nonprofit organizations shut their doors for good. No more food, no more beds, no more counselling.
Why couldn’t they stay in business? Because the business model for operating nonprofit charities is broken. Read More »