The Good, The Bad, and The Ugly of Nonprofits

The Good 

Nonprofits perform immeasurable good within a community or area by addressing and spotlighting the needs of the area. Those needs can range from healthcare, disaster relief, education, social and economic hardships, and more. Nonprofits have the ability to be strategic when helping someone and look at the whole picture instead of trying to put someone in a box that meets the parameters of a for profit type of business. With this business model, people are treated and looked at as people, not dollar signs. Nonprofits give those without a voice a platform to stand up with support and be heard. Finally, nonprofits are here for you in your time of need, when life seems dark, and the light at the end of the tunnel isn’t shining as bright.  

The Bad 

It takes a lot of money to run a nonprofit correctly and provide services and aid to those in need. Typically, the money will come from federal and state grants, private and foundation grants, and donations from the public. Every nonprofit is competing for the same money. Think about how different posts you see from nonprofits asking for a donation, or how many different nonprofits you see during the holidays competing for your last dollar. This doesn’t make one nonprofit better or worse than the next; it just means we are all fishing in the same pond for the same fish.  

The other bad part about nonprofits is that everyone thinks they can re-invent the wheel and make a bigger and better agency. There are a couple of problems with this thinking: 

1.  You are trying to bring in a new nonprofit into a market saturated with them and that are already competing for all the available money they can. Adding another competitor could possibly split the money being donated, and now you are going to have two agencies potentially fail.  

2. Sometimes a whole new agency doesn’t need to be made; sometimes the current agency just needs new board members to help get to the next level. If you are passionate about a cause, contact the local nonprofit and see how you can get involved and help.  

3. The cost of starting a new nonprofit can be massive. Factoring a building, construction to update the building to your standards, hiring staff, office supplies, and any other supplies you may need before you even help someone. It would be a lot easier and time effective if you contacted a local nonprofit that fits your beliefs and helps them fundraise.  

The need for support always outweighs the amount of support available.

The Ugly 

The reality of a nonprofit is that we want to help every person, animal, or group that we can. However, sometimes that just can’t happen. Sometimes money runs out before the project is complete, sometimes the person or group that is in need hasn’t completed their requirements, and sometimes everything falls into place and the needs are fulfilled.  

One BIG UGLY that people do not want to address is at the end of the day a nonprofit is still a business. It has employees to pay, rent or mortgage, insurance, utilities, and other business costs. It is great when people bring water, food, blankets, and clothes to be given out to those in need. However, those items do not pay for electricity, water, heat, mortgage, or wages for employees. There is a time throughout the year that nonprofits need money instead of items. If you are thinking about donating, contact your nonprofit and ask what their current needs are. $10 for a couple of cases of water means just as much as a $10 donation depending on the time of year.  

How does this relate to Share the Warmth? 

Let’s take it from the top! Share the Warmth is in good standing with every federal and state agency that provides funding and support. All our 990’s and required tax documents are filed and current. During the 24-25 fiscal year we were able to help 341 individuals with emergency shelter and housing. We were able to provide detailed case management and services that are not offered through other agencies. We were the only place (nonprofit or for profit) in the county to open a 24-hour cooling and warming center. We have brought in financial literacy classes for not only the guests of the shelter, but also the community members for free. There will be many new programs coming in the 25’-26’ fiscal year. 

The bad is we are competing for the same money as many other nonprofits in the community. Lenawee County does not get the same financial support with grants like the Detroit, Ann Arbor, Lansing, or Flint areas. However, the need is still as great per capita here as it is in those areas. We must ask for support from the locals because these are Lenawee County members that we are helping and will continue to help if our doors can stay open.  

Lastly, the ugly; we do try to help every person that walks through our doors. When someone comes to us for emergency shelter, they meet with a case manager and get set up with a case plan for success. That case plan is tailored to their personal needs. The goal in the end is the person to find stable income and housing before exiting. However, sometimes that doesn’t always happen. With a shelter of 62 individuals, sometimes people must exit from the program for the safety and wellbeing of the other 61 individuals. People are given multiple chances to improve unless the direct safety of others is being questioned.  

So, here is the good, the bad, and the ugly for nonprofits and Share the Warmth. We hope you gained a little knowledge along the way. If you would like more information, please reach out to share@STWLenawee.org