Hockey legend Wayne Gretzky famously said, "You'll always miss 100% of the shots you don't take." Simple enough to understand, but if you are averse to sports analogies, how about, “You have to risk it to get the biscuit.”

There are countless other ways to make the same point: No risk, no reward.  

The documentary Uncharitable was released in the Fall of 2023. Its premise challenges the scarcity mentality, a frequent default used in guiding many nonprofit decision-makers when it comes to investing in their organization’s capacity. The film advocates for a more business-like model with some higher levels of risk tolerance to enhance missional impact and sustainability. It is a jarring wake-up call for sector leaders and anyone who believes in the pivotal role nonprofits play in tackling many of our society’s biggest challenges: finding cures for cancer and other diseases, eliminating poverty and homelessness, fighting hunger, ensuring clean water sources and clean air, and many more.  

The movie asks thought-provoking questions as to why so many of these issues remain unresolved after decades of trying and millions of dollars donated and granted to our charitable organizations. It dives deep into these questions and offers thoughtful insights into the root causes:

1. Challenging the Overhead Myth: The documentary argues that the obsession many nonprofit board and staff leaders have with keeping overhead costs low is misguided. While many traditional donors and charity watchdog groups have for decades reinforced the belief that low overhead as a sign of efficiency, Uncharitable contends that this perspective can be harmful and limit potential for organizations to accomplish great things. It suggests that investing in administrative costs, marketing, and staff salaries can significantly enhance an organization's effectiveness and that these costs are vital to the success of the program and service delivery. This idea runs counter to the long-standing notion that overhead is a bad word that donors view as wasteful and must not be confused with their desired investments in the programs and services, making it a contentious topic – and one that too many nonprofit executives and board leaders are hesitant to consider for fear of being perceived as poor stewards of donors’ gifts.
2. Advocating for Competitive Compensation: Uncharitable makes a strong argument for nonprofit organizations offering competitive salaries to attract top talent. This too is controversial because many people believe that those working in the nonprofit sector should be motivated purely by selflessness and therefore be OK with lower compensation for work that is just as important and demanding, if not even more so, than many corporate positions paying significantly higher salaries and offering enticing benefits for their workers. The documentary argues that this expectation limits the sector's potential by dissuading talented, high-performing professionals who could otherwise make a substantial impact in the sector.  
3. Embracing Business-Like Practices: The film encourages nonprofits to adopt practices from the for-profit sector, such as aggressive marketing and investment in growth. Critics argue that this approach risks undermining the core values of nonprofit by prioritizing financial metrics over social impact. The fear is that nonprofits might lose their focus on mission-driven work, becoming more like businesses in their pursuit of expansion and efficiency.  

President John F. Kennedy once said, “There are risks and costs to action. But they are far less than the long-range risks of comfortable inaction.” The documentary makes the case that risk-averse nonprofits limit their potential impact, held back by the perceived fear of being called out by board members and funders.  

Yes, there are risks that come with making bold investments in people, technology, marketing, and other capacity-building measures. But making bold investments and ensuring accountability, integrity, and good stewardship are not mutually exclusive concepts. It simply calls on leaders to engage in thoughtful planning, effective communications, and authentic dialogue and engagement with institutional funders, philanthropic investors, and rank and file donors. Sounds so simple, but too many leaders are so fearful of the pushback they might get that they opt to instead to maintain the status quo. They fail to take their shot!  

Uncharitable is now available on variety of streaming services including Apple TV, Amazon, Google Play, and YouTube. Grab some popcorn and spend a couple of hours being challenged to think differently about our nonprofit sector’s potential. Better yet, gather your board members, management team, key donors, and other stakeholders for a watch party. Then find time for discussions and see if it sparks any ideas that might boldly transform your teams, operations, systems, and programs, thereby ensuring that your organization is not just surviving but thriving and creating lasting social change. Our team is here to help guide those conversations if needed.

In one of her recent blogs, my colleague Staci Barfield paraphrased a quote from the author Marshall Goldsmith: “What got us here will not get us there.” People and places across our state and throughout our world are facing unprecedented challenges that require new ideas and innovative solutions. To meet the moment and bring solutions to these problems, we must be courageous enough to invest differently in our work and our people. Take the shot!

‍

Bert is the Co-Founder and Principal of Armstrong McGuire. This year Armstrong McGuire is celebrating its 20th year of service to the nonprofit and philanthropic sector. Learn more about Bert and check out his other musings in his bio.

‍