Don’t Be Fooled By The Non Profit Label

“Non profit” is nothing but a legal status.

It’s a management decision, and it does impact how the organization operates, but no more than a long list of others; an idea I explored in detail in a previous post. At no point in the process of becoming a non profit does an organization have to prove it’s doing anything worthwhile. No non profit is ever audited for social worthiness.

And yet – people often put it front and centre when describing their organizations as if  it carries some moral weight, as if the fact of being non profit makes them virtuous.

It doesn’t, or; it shouldn’t. All it really means is they are legally prohibited to deliver profit to a third party.

There is an argument to be made about whether the profit motive is a good idea for any organization, or for society as a whole (also explored in a previous post). But as long as it’s a tool of our economy, why should we give anyone goodness points for not using it?

Even if we should, why would it be the first thing out of a person’s mouth when explaining that organization’s work? If an organization is saving children or helping people out of poverty or curing disease, shouldn’t those things take the lead, as opposed to a fairly obscure management choice?

Describing a social good organization’s work with its legal status makes about as much sense as describing it primarily as an organization that leases its office space or buys its office supplies in bulk.

Using ‘non profit’ to describe what an organization does is also a bit of a cheap trick. It’s a shortcut to appear virtuous without really saying anything about the work or the goals.

The organization may be doing good work, in fact. But it hasn’t developed the ability to articulate that. Which basically boils down to a missed opportunity to communicate, and fuels the unhealthy “don’t ask questions, just trust us and hand over your support” dynamic that exists in so much of the social sector.

So the next time you hear “we’re a non profit”, treat it as the smokescreen it is. If you’re interested, ask more questions. If you’re not, walk away. But don’t be fooled.