Nonprofit University Blog

I believe in coincidence—not that it is a sign from some higher power sending some message, but rather that I should look at the confluence of ideas and ask: what is going on here? Is there a trend brewing? The trend I’ve been seeing lately is about the ownership of a nonprofit.

First: no one—not the founder, the current executive director, the board, no one—owns a nonprofit. Nonprofits exist for the benefit of the public good, working on behalf of some portion of that public good. No matter how hard you might have worked to get that nonprofit off the ground or to keep it running, it isn’t yours. And it doesn’t belong to board members, either, who are there as the protectors of that public trust and must exercise their responsibilities to keep that trust. (Sometimes that means replacing the founder—but that is another blog).

Second, you cannot “buy” another organization’s charitable status and use it for your own charitable purposes. You can’t do this no matter what the condition of the nonprofit. It simply isn’t for sale. The IRS makes a determination of whether an applicant with a specific mission fits the criteria of a nonprofit and then, should it award nonprofit status, is doing so with the understanding that the nonprofit will execute that, and only that mission. Can one nonprofit merge with another? Absolutely. But that, too, is another blog.

Third, you can’t “sell” your nonprofit. You can’t sell what isn’t yours in the first place. Furthermore, the assets of a nonprofit—the property, goods, money, etc.—belong to the mission, if you will: they have all been acquired with the understanding that they will be used to further the mission of that organization. End of story. Thus, those assets must be used for charitable purposes. So, if you’re tired of operating the nonprofit, get another job, merge the organization with another charitable organization and then get another job. But selling?

Passion and great intentions are all wonderful and very much needed in the world of nonprofits. But understand the law and how to run a nonprofit before you enter into this world.

I’m approaching my new blog like it’s a virtual Hyde Park Corner and I’ve never lacked soap boxes to climb upon. I see it as a very large classroom (certainly a venue I’m familiar with), where I throw out ideas and have people react. So, with that, we introduce Nonprofit University of The Nonprofit Center at La Salle University.

University of Colorado Professor Thomas Pyszcynski and colleagues recently tested people’s attitudes towards charitable organization as influenced by their surroundings. They stopped people on the streets of Boulder to ask their opinions about charitable organizations. In return for taking the survey, a small donation would be made to a charity of the person’s choice.

Some people were stopped directly in front of a clearly marked funeral home, while others were stopped three blocks away. Can you guess which group was more positively inclined towards charities? Any surprise that it was the group staring death in the face? Apparently reminders of our own mortality cause us to want to help others more than if we aren’t being so reminded.

Let’s couple this idea with the theory of “helper’s high,” the growing body of research that documents both the physiological and psychological benefits of giving money and helping others. Studies show that giving time or dollars increases mood-enhancing chemicals in our bodies, allows for faster recovery, longer lives and a reduction in depression.

Put a group of professional fundraisers in a room and ask them about the return on those free note cards and mailing labels that frequently come with requests for your charitable dollars and you will get an array of different opinions. Ask volunteer managers about the value of that “thank you luncheon” and you’re also likely to get a diversity of responses. Has this practice of giving us something more than a simple thank you for our gifts of time and dollars created a culture that has lost the meaning of doing good simply to help others; of doing good simply because we know that as long as we are able it is the “right” thing to do?

Those of us who work for charitable organizations don’t do it because we know we are going to die, anymore than those who work for for-profit organizations think they will live forever. So why do you do what you do?