Podcast Summary: Statecraft with Santi Ruiz
Episode: What’s Wrong with Nonprofits?
Guest: Greg Berman
Date: February 4, 2026

Episode Overview

In this episode of Statecraft, host Santi Ruiz interviews Greg Berman, longtime nonprofit executive and author, about the structural and cultural shifts in the American nonprofit sector. The conversation covers the changing public perception of nonprofits, internal and external critiques from left and right, the evolving relationship between nonprofits and government, challenges of leadership, influence of philanthropy, trends in staff and mission alignment, and questions around transparency and trust. The core question: What is the “crisis” facing American nonprofits, and what can be done about it?

Key Discussion Points and Insights

The Role of Nonprofits in Governance

• State-Nonprofit Symbiosis: Nonprofits are integral to service delivery in America, often handling tasks traditionally managed by government—especially in major cities like New York.
  • “Government really relies on nonprofits to do service delivery in a host of different domains. ... You can't really talk about things like education, child care, housing development, economic development without talking about the nonprofit sector.” (Greg Berman, 02:47)
• Public Funding: About a third of U.S. nonprofit funding is derived from government sources (04:30-05:22).

Shifting Public Perception and the “Crisis”

• Erosion of Trust: Berman pinpoints a marked decline in public trust, starting around 2015-2016.
  • “Up until about 2015, 2016 ... there was kind of like ... a smile would come across people's face ... you must be a good guy. ... That started to erode ... the response was not warmth, but ... people looking at me side eyed or sometimes with kind of overt hostility...” (Greg Berman, 09:44-11:42)
• Indicators: Declining volunteerism, fewer small-dollar donors, and negative polling data are cited as signs of trouble (12:25-14:06).
  • “Donations going down to NGOs. The dollar figure remains high, but number of donors is going down.” (Greg Berman, 12:49)

Sector Transformation and “Associations Without Members”

• Professionalization & Membership Decline: Nonprofits have evolved from member-driven civic associations to professionalized organizations with less grassroots involvement.
  • “Increased professionalization ... something has been lost as well. ... Even the organizations that have lots of members, it's kind of different now. ... They don't feel a stake in those organizations...” (Greg Berman, 15:05-17:32)

Critiques from Left, Right, and Within

• Left Critiques: Focus on racial disparities in leadership, labor conditions (wages), and accountability over issues like sexual harassment.
• Right Critiques: Wokeness, lack of viewpoint diversity, and detachment from mainstream opinion.
• Common Ground: Both sides attack the opaque, elite-driven “nonprofit industrial complex.”
  • “Both left wing and right wing critics use this phrase ... ‘nonprofit industrial complex’ ... motivated by elite opinion and funded by out of touch elites, ... perpetuating their own self interest rather than solving social problems.” (Greg Berman, 17:43-20:27)
• Additional Critiques: Consequences of nonprofits doing government work, lack of transparency around funding sources, and structural disincentives to actually solve social problems (21:34-23:41).

Greg Berman’s Nonprofit Leadership Experience

• Center for Justice Innovation (CJI): Berman’s tenure involved launching innovative criminal justice programs in NYC, heavily funded by government, demonstrating a close public-private partnership model.
  • “An organization like the Center for Justice Innovation is deeply intertwined with government. ... Back when I was in charge, we got roughly equal amounts of money from city, state, and federal government sources.” (Greg Berman, 25:32-29:51)
• Leadership Challenges: Balancing fundraising with mission, staff management, and multi-faceted accountability.
  • “The biggest challenge ... about running a nonprofit is raising money. ... That is the sine qua non of leadership in the nonprofit sector.” (Greg Berman, 33:21)

Generational Shifts and Internal Tensions

• Staff-Led Shifts: Younger employees push organizations left, advocate internal mission expansion or “platform” usage rather than institutional shaping.
• Labor Market Dynamics: Social media democratization, tight labor markets, and changing expectations destabilize hierarchy.
  • “Social media has driven democratization ... everyone has a communicator in their pocket ... that has profoundly destabilized not just nonprofits, but government, media, etc.” (Greg Berman, 39:13-41:11)
• Mission Creep: Staff challenge the institutional mission—the Sierra Club’s turmoil cited as an example (43:26-45:57; 78:29-81:55).
  • “Staff’s job is not to reshape the mission of the organization; that really is ... the task of leadership.” (Greg Berman, 44:15)

Philanthropy’s Influence and Policy Polarization

• Donor Shifts: Fewer small donors, more large foundations with an appetite for “big wins” and policy change over incremental, service-focused impacts.
  • “Philanthropy has driven polarization. ... A desire to fund advocacy over service delivery. ... It became very hard to raise money for discrete service delivery programs ... much, much easier to raise money for ... this campaign to close Rikers Island. That’s where the heat was.” (Greg Berman, 47:53-52:38)
• Venture Capital Logic: Philanthropy increasingly mimics VC expectations—seeking catalytic change, new orgs over steady support (53:17-54:04).

Accountability, Transparency, and Incentives

• Transparency: 990 filings provide more openness than most businesses, but many still call for more donor transparency (67:11-68:42).
• Structural Incentives: Nonprofits’ lack of direct profit motive leads to questions about effectiveness—but Berman argues dedication, mission-orientation, and lack of alternatives justifies their existence.
  • “There’s a lot of nonprofits that continue to exist year after year ... regardless of whether they’re having a good impact in the world.” (Greg Berman, 63:08-64:01)
  • “The thought experiment I would turn to you is if we could get rid of all the nonprofits tomorrow and have that work performed by business or government, would the world be a better place? ... I don’t think it would.” (Greg Berman, 61:24-61:48)

Growth and Decline of Trust

• Mission Discipline: The need for nonprofits to stick to their original mission and avoid divisive political controversy, and the risk of “platform over institution.”
• Restoring Credibility: To regain public trust, nonprofits must achieve their core missions, foster ideological pluralism, and resist being reduced to activist platforms.
  • “The most important thing you can do is focus on achieving the goals of your organization ... have as a touchstone ... the mission of the organization and that you are servant to that mission rather than the reverse.” (Greg Berman, 83:06-85:07)

Notable Quotes & Memorable Moments

• On the Nonprofit “Crisis”
  “I perceive there to be a significant decline in public trust and confidence in nonprofits.” (Greg Berman, 10:39)
• On accountability
  “Nonprofits are some of the most accountable institutions that we have. ... Those are multiple, multiple levels of stakeholders that you have to worry about all the time.” (Greg Berman, 32:16)
• On mission creep and internal dynamics
  “Staff’s job is not to reshape the mission of the organization; that really is ... the task of leadership.” (Greg Berman, 44:15)
• On philanthropy’s faddishness
  “At a certain point, foundations ceased being as interested in that story because ... ‘that’s cute, but that’s 200 people. What we want is transformational change.’” (Greg Berman, 50:14–52:38)
• On restoring trust and focus
  “I think nonprofits should keep their head down and stick to their knitting. ... At the end of the day ... the mission of the organization ... is where the road back to trust ... starts.” (Greg Berman, 83:06–85:07)

Important Timestamps

• Introduction and guest background: 00:00–02:07
• The nonprofit sector’s role in modern governance: 02:07–05:38
• How public perception of nonprofits has changed: 09:34–14:06
• Major critiques from left, right, and “horseshoe theory”: 17:43–23:41
• How service delivery NGOs function (CJI case study): 25:32–31:24
• The multi-vector challenge of nonprofit leadership: 32:16–33:20
• Generational, labor, and staff-culture tensions: 35:35–45:09
• Philanthropy, polarization, and the rise of policy advocacy: 47:53–54:34
• Critiques of inefficiency, impact, and structural incentives: 56:10–66:36
• Transparency, donor disclosure, and public accountability: 66:36–72:11
• Nonprofit sector vs. government in service delivery: 73:59–76:51
• The significance of 2020 and the turn in public trust: 76:51–81:55
• Practical advice for nonprofit executives and closing thoughts: 81:55–85:07

Flow & Tone

The tone is conversational, candid, and occasionally self-critical, with both host and guest drawing on first-hand experience in nonprofit policy circles. Ruiz brings a slightly more skeptical, policy-analytical perspective, while Berman offers insider reflections and a staunch—if qualified—defense of the sector despite his deep concerns.

For Listeners New to the Nonprofit Sector

This episode is a rich resource for understanding how American NGOs evolved into key state partners—and why their very success has made them targets of skepticism, internal conflict, and political polarization. The hosts clarify both structural features and lived realities of the sector, highlighting why reform and renewed mission focus may be the only way forward.