Podcast Summary: Ep. 228 - "Nonprofits Are Under Attack"

Host: Joan Garry
Guest: Glenda
Release Date: May 10, 2025

In Episode 228 of "Nonprofits Are Messy: Lessons in Leadership | Fundraising | Board Development | Communications," Joan Garry sits down with Glenda to dissect the multifaceted challenges currently plaguing the nonprofit sector. Titled "Nonprofits Are Under Attack," the episode delves into both external pressures and internal struggles, while also highlighting pockets of hope and resilience within the community.

1. External Challenges Facing Nonprofits

The conversation begins with a palpable frustration over the increasing pressures from federal administrations and societal misconceptions about the nonprofit sector.

• Governmental Pushback: Glenda expresses anger towards institutions that possess the power to challenge federal administration policies but choose not to, especially concerning diversity, equity, and inclusion (DEI). She states, “We have an administration saying we don't support DEI. If you're an organization whose job is diversity, equity, and inclusion, what do you do? That is a really tough choice” (03:17).

• Public Misconceptions: Both Joan and Glenda highlight a widespread ignorance about the true nature and value of nonprofits. Joan criticizes the prevalent myths, such as the notion that nonprofit executives are "overpaid," stating, “That is just bullshit” (05:04). This misunderstanding undermines the essential role nonprofits play in society.

• Impact of Funding Cuts: The duo discusses the severe implications of reducing federal funding and closing agencies like USAID. Joan emphasizes the real-world consequences, saying, “It's not hyperbole to say that when you actually weaken the nonprofit sector in this way... lives are in jeopardy” (05:04).

2. Internal Leadership Challenges

Beyond external threats, the episode sheds light on internal issues within nonprofit organizations that exacerbate their vulnerability.

• Risk Management Over Innovation: Joan criticizes board members who default to risk-averse strategies during crises, focusing solely on cutting expenses rather than seeking innovative solutions. She laments, “I'm seeing very little of it [board engagement in creative revenue generation].” (15:16).

• Executive Directors Pleasing Boards: There's a notable concern about executive directors prioritizing board appeasement over proactive problem-solving. Joan remarks, “Executive directors who are pleasers... give them what they want” (16:09), highlighting a leadership style that may hinder organizational resilience.

• Lack of Strategic Vision: The conversation touches on the absence of strategic thinking and scenario planning in many nonprofits. Joan shares an example of a client struggling with anxiety after brainstorming new revenue ideas without a clear strategic direction (31:34).

3. Misconceptions About Nonprofits

A significant portion of the discussion centers around the public's misunderstanding of what nonprofits are and how they operate.

• Definition and Purpose: Glenda addresses common misconceptions, such as the belief that nonprofits can't pay their staff, clarifying, “The difference between a for-profit and nonprofit is that a nonprofit brings in money and invests it back into the programs and services they deliver” (10:21).

• Visibility and Recognition: Despite the high number of nonprofits, they often go unnoticed. Joan shares a personal anecdote: “I asked somebody to guess, they said, I don't know, 40. There are a hundred nonprofits in Montclair in a town of 40,000 people. They're everywhere” (12:37).

4. Moments of Hope and Creative Solutions

Amidst the challenges, Joan and Glenda highlight inspiring examples of leadership and innovative approaches that offer hope for the sector's future.

• Philanthropic Coalitions: Glenda mentions an open letter from the philanthropy network Wings, urging funders to "act boldly to protect and strengthen civil society" (19:19). This collective call to action demonstrates solidarity within the philanthropic community.

• Creative Funding Initiatives: Joan shares an inspiring story about Keshet's partnership with the Hebrew Free Loan Society to provide interest-free loans for families needing to relocate due to anti-LGBTQ climates. She questions, “Why are we not seeing more of this from bigger players?” (22:54).

• Leveraging Human Capital: Both guests discuss the untapped potential of skilled professionals from federal agencies. Joan envisions, “How does our sector... use their assets?” (26:04), proposing innovative funding models to harness this expertise for nonprofit support.

• Authentic Leadership Examples: Glenda praises H. Art Taylor, the new head of the Association of Fundraising Professionals, for his empathetic and authentic approach in addressing member concerns, illustrating the kind of leadership needed in turbulent times (35:28).

5. Conclusion and Actionable Insights

The episode concludes with a call to action for nonprofit leaders to embrace creativity, community, and strategic vision to navigate the current crises.

• Embracing Bold Ideas: Joan urges leaders to think outside the box and pursue bold, innovative ideas rather than relying on external saviors like billionaires. “You don't take ownership or agency for the future and sustainability of your organization. You don't sit down and say, I don't know, let's think about the wackiest idea we possibly could” (30:19).

• Community and Support Systems: Emphasizing the importance of community, both moral and strategic, Joan and Glenda advocate for stronger coalitions and support networks. Glenda advises, “This is not a time to be a hero alone. Ask for help” (39:59).

• Vision for a New Normal: Inspired by Sonia Renee Taylor's quote, Glenda envisions a future where nonprofits help stitch “a new garment, one that fits all of humanity and nature” (26:55). This vision urges the sector to build more inclusive and sustainable systems post-crisis.

Key Takeaways

• Nonprofits are essential yet undervalued pillars of society, facing significant external and internal challenges.
• Leadership within nonprofits must pivot from traditional risk-averse strategies to innovative and collaborative approaches.
• Public misconceptions about the nonprofit sector hinder its growth and effectiveness.
• Moments of crisis present opportunities for creative solutions and strengthened community bonds.
• Empathy, authenticity, and bold vision are crucial for navigating and overcoming current adversities.

Notable Quotes:

• Glenda on institutional inaction: “They have the power to... that's what the nonprofit sector was made for” (03:17).
• Joan on public misconceptions: “That is just bullshit” (05:04).
• Glenda on collective action: “We need to act boldly given all of the carnage that's happening right now” (19:19).
• Joan on leadership and innovation: “You don’t take ownership or agency for the future and sustainability of your organization” (30:19).
• Glenda on community support: “This is not a time to be a hero alone. Ask for help” (39:59).

This episode serves as a candid exploration of the current state of the nonprofit sector, urging leaders to confront challenges head-on with resilience, creativity, and collaborative spirit. Joan Garry and Glenda provide both a critical lens and a beacon of hope, encouraging nonprofits to adapt and thrive despite the odds.