Botox on a unicorn: Should the nonprofit sector change its name?

But anyway, today’s topic. In the past few months, I’ve been hearing more and more people suggest that the nonprofit sector should change its name. “Defining ourselves by something we’re not is pretty ridiculous,” said some very smart people during a happy hour. “Yeah!” I agreed, getting up in arms, “that’s like calling a woman a ‘non-man’! Or hummus a ‘non-guacamole’! Ridiculous! Let’s grab our torches and pitchforks!”Suggestions for new names instead of “nonprofit” are numerous—with the basic building blocks being words like “social,” “community,” “impact,” “benefit,” “public,” “purpose,” “mission,” and "cashflow-related night-terrors"—but none of them perfectly fits and encompasses what we do. I asked the NWB Facebook community for their thoughts on various potential monikers:The Impact Sector: Kind of violent, like car crashes. “Makes me think of crushing garbage into compact cubes.”The Social Sector: Kind of wishy-washy. "That sounds like all we do is go to parties.”The Social Impact Sector: Kind of violent, yet wishy-washy. “Sounds like all we do is go to parties that involve crushing garbage into compact cubes.”The For-Purpose Sector: “Makes me roll my eyes” says a colleague, and I have to agree with her. It reminds me of “all-purpose flour.” This term sounds half-baked.Social Profit Sector: Sounds awkward, and shouldn’t we get away from this business concept of “profit” altogether?The Mandate-Driven Sector or Mission-Driven Sector: I can’t imagine some kid saying, “When I grow up, I’m going to work for a mandate-driven organization.” (“Billy, stop making up imaginary nonsense and do your chores!”)Public Benefit Sector, or Community Benefit Sector: These are not altogether horrible, and “I work for a CBO” doesn't sound bad.
Some recommend we just stick to “not-for-profit.” Or NGO, since that’s the global term used in many countries. Some suggest we adopt names that actually reflect what we do, hence the Get-Sh!#-Done-With-Duct-Tape-and-Sheer-Will Sector or the We-Run-Clinics-and-Save-Lives-with-what-You-Spend-on-Bottled-Water Sector.Another colleague recommended Justice League, which I think is cool, because then we’re each like superheroes. My superhero identity will be “Meeting Man”: Have

While I definitely agree that there is power in words and language, and that the term “nonprofit” is far from perfect, the name is not the biggest challenge our sector faces, and the more time and energy we spend on it, the less time we have to tackle fundamental issues preventing us from fully doing our work. Here are a few of these issues, which I’ve written plenty about so I won’t elaborate too much on:Funding dynamics, and the adversarial relationship between funders and nonprofits. We’re supposed to be partners solving the same societal problems, but one wields vastly more power than the other, and there’s a huge wall between the two. This power imbalance has been perpetuating a really unstable, ineffective financing system where nonprofits are forced to spend a significant amount of our time justifying our work instead of doing it, subjected to severely awful things like the Overhead Myth and the Sustainability Myth.The business sector’s superiority complex, and our parallel inferiority complex. Overall, there is often a lack of understanding from business people—even on occasion our donors and board members—on what nonprofits are and what we can do. For instance, as I wrote in “Dear business community, please remember these 10 things about nonprofits,” unlike businesses, as our programs become more successful, we increase in costs without a matching increase in revenues. And yet, we’ve also internalized this myth that businesses are more efficient and effective, leading us to adapt crappy systems and habits, such as inequitable hiring practices.Equity, diversity, cultural competency, inclusion, etc. I’ve written about Trickle-Down Community Engagement (TDCE), where large mainstream organizations absorb the majority of the funding to serve marginalized communities, and those same communities are left with pennies and often out of the discussion. I’ve also written about how we’ve been so focused on increasing the demands for leaders of color while not paying attention to growing the supply of professionals of color in the sector.These are just three issues we need to tackle. We haven’t even touched on the need to increase compensation for nonprofit staff, the need to address staff burnout and turnover, the growing complexity and quantity of the challenges our communities face, the fact that foundations are spending less than 1% on leadership, and some other way more important stuff. Honestly, if we can solve some of these problems—if all funds were multi-year general operating, if all nonprofit professionals were paid what they’re worth so they can stay in the sector, if we nonprofits can focus on achieving long-term outcomes instead of reporting on which funders paid for what part of our operations, if communities that are most affected by inequities are trusted and funded to lead in the problem-solving, if everyone can work together effectively to address societal challenges—then we could be called The Fluffy Bunnies Sector for all I care.

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