The Herald Bulletin

Morning Update

Local Business

August 25, 2013

Nancy Vaughan: Growing the market for love

A few months ago the three leading sources of information about charities issued a joint letter to “Donors of America” titled “The Overhead Myth.”

“We ask you to pay attention to other factors of nonprofit performance: transparency, governance, leadership, and results,” stated the CEOs of BBB Wise Giving Alliance (overheadmyth.give.org), Guidestar (overheadmyth.guidestar.org) and Charity Navigator (charitynavigator.org/thebestandworstwaytopickacharity).

The letter cites numerous studies that indicate not only that overhead is a poor measure of a charity’s performance, but that “underinvesting in overhead creates a range of negative outcomes which undermine quality and sustainability.” Noting that overhead costs include important investments charities make to improve their work: training, planning, evaluation, and internal systems as well as fund raising, the letter references what the Stanford Social Innovation Review has called, The Nonprofit Starvation Cycle.

One of the most dynamic spokespeople for the nonprofit sector, Dan Pollatta, author of Uncharitable, spoke to United Way professionals in May at the Staff Leaders Conference. A shortened version of his message is available on youtube as a TED talk (http://youtu.be/bfAzi6D5FpM).

The most compelling piece of Pollatta’s message, to me, is framed by his question, “Does the nonprofit sector have a serious role in changing the world?” His answer: business will leave behind the most disadvantaged and unlucky, and will not develop those markets for which there is no monetary measure. “The disabled need laughter, compassion and love in their lives. Where is the market for that? Philanthropy is the market for love.”

Yet, in the past 40 years in the US, poverty has remained at 12 percent of the population and nonprofits have remained at two percent of gross domestic product, with just 20 percent of nonprofit resources focused on health and human services. How can a sector without the tools to grow possibly gain the scale necessary to create real change?

Text Only
Local Business
  • Roundabout bids higher than expected Bids for a planned facelift of the gateway into Anderson from Interstate 69 at Scatterfield Road came in considerably higher than the engineer’s estimate for the project.

    July 29, 2014

  • FEA - HB0729 - Senior Falls Aging safely in the comfort of her home Marilyn Moneyhun said being totally reliant on others is difficult. "Losing your independence is a shock to your system," Moneyhun, 84, said. "You are not in control anymore."

    July 29, 2014 1 Photo

  • NWS - HB0728 - business expansion CB Fabricating makes $2 million investment

    A local business founded in 2006 has invested $2 million in new equipment and a building expansion.

    July 29, 2014 1 Photo

  • Charo Boyd: 'My Social Security' simplifies your life So many people buzz through extremely busy and complicated schedules these days. A smartphone in one hand, a computer in front of you, and a digital task list that never seems to end. In addition, to complicate things just a little more, there’s another event you need to add to your list — National Simplify Your Life week.

    July 28, 2014

  • nws - hb0725 - colts - jc - 4.jpg Colts camp's impact: pricey or priceless?

    Football fever is here and the city is flooded with fans eager to catch a glimpse of a favorite player. But officials say they are unclear what kind of economic impact the Indianapolis Colts training camp has on the area.

    July 26, 2014 1 Photo

  • BIZ - HB0727 - Skill gap 2 Seeking a solution today, not tomorrow Tina Warner-Morton says she wants to open her own healthcare business because it is too difficult to work for an employer with unclear employee expectations.

    July 26, 2014 1 Photo

  • BIZ - HB0727 - Cathy Cupboard Biz Profile Business Profile: Cathy's Cupboard focuses on customer satisfaction Cathy McPhearson opened her first storefront in June, but this is not her first venture into business. “I have always wanted to have my own business,” she said. “The problem was finding what people like, but everyone seems to like candles.”

    July 26, 2014 1 Photo

  • IU Health Ball Memorial Hospital named Level III trauma center The Trauma Center at Indiana University Health Ball Memorial Hospital has been verified as a Level III Trauma Center by an ad hoc committee of the Committee on Trauma (COT) of the American College of Surgeons.

    July 26, 2014

  • Clark, Big Joe mug 'Big Joe' Clark: Beat the market or meet your goals? True or not, my experience tells me that goals – especially when written down – undoubtedly serve as catalysts for success. However, danger arises when a goal does not properly focus on the long term result you expect.

    July 25, 2014 1 Photo

  • DSC_8125.JPG Auction teaches in business, farming

    After 10 years of 4-H, saying goodbye to his animals has become a simple matter for McKennon Heald. But he said he wouldn't be surprised to see some tears from some of the younger participants. He's been there.

    July 25, 2014 2 Photos

Stocks
Hyperlocal Search
Premier Guide
Find a business

Walking Fingers
Maps, Menus, Store hours, Coupons, and more...
Premier Guide