1. Make Non-Profits Prioritize Their Mission | SFTM Episode 13 45:39

Big Philanthropy is a Big Problem. Religions, large family foundations, and giant non-profit trusts sling around huge sums of money and lots of it is wasted or funneled back into for-profit ventures. Today we look at how reforming non-profit governance could help make non-profits prioritize their missions and stop bowing to big moneyed interests.

Everyone knows that non-profits have to make enough money to keep their doors open and lights on, so it is not surprising that they fundraise or even charge for services, but not everyone knows that the members of the boards of non-profits legally must prioritize the financial well-being of the organization, even if it is at odds with the organization's mission. This is why many non-profits take actions that are, well… a lot like a for-profit business: they follow the money. 

Board members have what is called a “fiduciary duty” to the non-profit they govern. So, for instance, if a big foundation says to a non-profit “we'll donate $1M to your organization if you do X, Y, and Z” the board of that non-profit is going to be hard pressed not to take that money, even if X, Y, and Z are not priorities for the organization's mission.  If a board member advocates refusing this money and keeping the organization laser-focused on their mission, they can be kicked off the board or even sued by the organization or the other board members. 

Today we ask, what if board members had a missionary duty that superceded their fiduciary duty? What if board members or even members of the public could sue a non-profit that wasted or misused money by spending it in ways that did not support their mission? Could we curb Big Philanthropy's choke hold on the non-profit sector? Could we help non-profits spend less on nibbling crudite and more on fighting cruelty?

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Adam Braus Author, Blogger, Podcaster

Adam Braus is a polymath professor and professional in San Francisco. He has built many companies and non-profits and currently building a new college called Elton College. He is a lover of big ideas and new solutions.