Opinion: Top Ten Nonprofit Myths


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If you've ever wondered what it's like to run a not-for-profit, you're in good company.

But if you've ever wondered what it's like to run a not-for-profit, you're in bad company.

That's because nonprofit organizations (NPOs) "are often misunderstood, creating unnecessary barriers for the sector's growth and unique impact on our community's economy and livability," according to a Q&A published in Nonprofit World.

Here are 10 misconceptions about nonprofit organizations: They're not allowed to make money: "NPOs aren't allowed to make money.

People conflate 'nonprofit' with 'anti-functioning.' However, a sustainable NPO must foster sustainable revenue streams, and can generate revenue in excess of expenses."

They're subject to the same indirect costs as other corporations: "The pressure to underfund those functions unnecessarily restrains program delivery and undercuts mission-related impact."

They can't measure success: "NPOs can't measure success.

For-profit success is tracked in many ways: net revenue, ROI, cost-benefit, share price, and other familiar lenses that boil down to how much money the company makes for the owners

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