The public goods theory of the nonprofit sector has risen in prominence. However, voluntary organizations that provide collective goods (Weisbrod, 1975) have insufficient resources, even collectively, and especially now that they are becoming more and more dependent on the pet projects of the mega-wealthy. What's the response to be? Perhaps the best response is to continue providing as much as possible, while becoming more engaged civically than ever. Civic engagement organizing by nonprofits begins at the community level and requires the courage to be mission-driven, not self-maximizing.
Scaling in the nonprofit sector is conducted differently than in the profit-motive sector. By focusing on a slice of the commons, nonprofits become expert in specialties; scaling in the nonprofit sector, therefore, is conducted precisely by bringing all these specialties to work in the same direction through collaborating or coordinating, not by merging, subsuming, and monopolizing. An organizational growth mindset cannot successfully scale to effectively address wicked problems--these problems require a collectivist mindset.
It is not enough to talk about "doing good," we lead by practicing it. Scaling in the nonprofit sector is conducted differently than in the profit-motive sector. By focusing on a slice of the commons, nonprofits become expert in specialties; scaling in the nonprofit sector, therefore, is conducted precisely by bringing all these specialties to work in the same direction through collaborating or coordinating, not by merging, subsuming, and monopolizing. An organizational growth mindset cannot successfully scale to effectively address wicked problems--these problems require a collectivist mindset.
Nonprofits, as stewards of their slices of the commons, have a moral obligation to work to reverse harmful trends, not only in the work they do, but even more importantly in how they do it. Participative assessment and decision-making is what made the nonprofit sector so important in democracy in the past. Allowing an elite few to make decisions for us comes at our peril. Nonprofits can model democracy in action. Yes, democracy is "messy"--it is complex. But it is an exciting, innovative, and rewarding "mess." Nonprofits can serve as training grounds for democracy, just as they once did. It requires a shift in focus of nonprofit professionals, of how we think of leadership.
It is absurd to try to plan without consideration of the larger environment in which nonprofits reside. This means it is absurd to try to completely distinguish an organization from its responsibilities of citizenship.
Reference:
Weisbrod, B. A. (1977). The voluntary nonprofit sector: An economic analysis. Lexington, MA: Lexington Books