There are societal gaps between what people need and what they're being provided by either their jobs, philanthropists, or the government. Nonprofits are uniquely positioned to fill those gaps because we have a distinct superpower: unlike standard corporations which operate with the goal of enhancing the bottom line, nonprofits strive to solve a particular socioeconomic problem unaddressed by governments, philanthropists, or corporations. We can work together in abundance rather than in the siloes of competition and leverage our resources to create palpable community change.

However, eliminating profit from the business equation removes a critical, universal performance indicator. Profit is what tells corporations whether their product is successful, whether they’re operating efficiently, and whether they can sustain the expenses they incur. 

Nonprofit organizations often sacrifice profit for the sake of mission execution, and in doing so lose that illuminating benchmark. As a result, the nonprofit sector is mired in turnover, burnout, and inefficiency. We are failing to fill societal gaps by churning through smart people, donated dollars, and expert advice. This is not because resources are scarce — they're mismanaged. Funders are reluctant to continue giving to nonprofits who can’t demonstrate how they have moved closer to their vision as a result of contributed dollars. If we allow our industry to become synonymous with burnout and inefficiency, donors may lose faith in nonprofit efficacy altogether. 

However, if we are clear about the mission and progress toward that mission, we can generate more revenue and do even more good. To solve problems, incentives must be aligned for credibility. If we abandon financial performance indicators, we must replace them with another measure of progress.