Nonprofit Organizations Have a Limited Scope
Their operational capacity is limited by local laws, regulations—and their own internal issues. Their internal structure fundamentally limits them.
Non-profit organizations can do a lot of good. From delivering medicines to those in need, to working on issues such as climate change, NGOs and entities in the private sector are an integral part of making the world more fair. But they are limited both in their jurisdictional scope and their impact. Nonprofits are often treating the symptoms of an issue like poverty or racism, without necessarily being able to get at its roots. A food bank, for instance, that gives free food to the needy, is certainly providing an important service. But that work is treating the problem far downstream from its initial causes: such as systemic racism, redlining, or corrupt corporations that don't pay their workers a fair wage. Additionally, many nonprofits suffer from impractical business models or too much overhead cost. Sometimes only a fraction of the money they take in goes toward achieving their social justice goals. "Too many nonprofits are constrained by a slow-moving, institutional, and self-interested model," reads an article in the Stanford Social Innovation Review. The article goes on to note how much money non-profits spend on their staff and on lavish fundraising events rather than the communities they serve. Between their limitations in scope and the obstacles to the highest level of functioning, nonprofits are not always the sharp tool for social change that we might like them to be.
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