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Not all charities should survive

January 9, 2010
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IBJ Letters To The Editor

My letter is in response to Kathleen McLaughlin’s excellent [Dec. 28] article, “Charity mergers scarce.” While all of the comments shared are well-considered, the elephant in the room is nonprofit closures.

Statistics show that 40-50 percent of small businesses, successful enough to have employees beyond the owner, close in the first five years. The high number of new business startups and closures creates a natural cycle of innovation and weeds out the businesses that can’t deliver a quality product/service, can’t manage their people and resources, or can’t market.

Because most nonprofits are created to serve a need in the community, it is considered a travesty for any nonprofit to close. This makes it hard for truly effective nonprofits and new innovations to attract the people and resources they need.

Board and staff leaders, funders and donors need to consider whether the organizations they lead and support are truly equipped to effectively turn resources into results. Just like those well-intentioned small businesses, many are not.

__________

Bryan Orander
President
Charitable Advisors LLC

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