Of the 1.1 million non-profits in the US, 90+% have an annual budget of under $1M. A very high percentage of those have an annual budget of under $100,000. There is frequent talk of the need for non-profits to merge. The conventional wisdom goes that there are too many small non-profits, performing uncoordinated redundant tasks. Conventional wisdom also states that because they are small, they can never attain the scale to run efficiently, i.e. the small folks spend too much on administrative costs.
While much of this is true, I have a different philosophy. I feel that one of the key roles that non-profits play in society is as niche-fillers. Societies major institutions are governments, educational institutions, corporations, and religious institutions. I believe that non-profits, in part, exist to fill the cracks between these major building blocks. In essence, non-profits pick up where others fail. If you agree that this is a primary role of non-profits, then small is beautiful. A smaller, more nimble, organization can more readily fill those cracks in society.
As to mergers or shared cooperatives, the primary issue tends to be around people. Who is going to lead the merger? What is the new name going to be? Who will be the Executive Director and who will be the Assistant? As to cooperatives, like the hen baking bread, everyone wants the benefits but no one wants to organize them. This is part of the reason why we created Easy Office. We can deliver the scale, access to technology, and expertise that no single organization can reasonably afford on their own. We enable the non-profit sector to stay relatively small and nimble. And our shared service approach allows the service to be affordable and accessible for even the smallest of non-profits.
Easy Office Blog
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