Redefining Philanthropy: Lessons from the Documentary "UnCharitable"
CEO and Founder Loree Lipstein discusses UnCharitable and how we can use it to Help redefine philanthropy
CEO and Founder Loree Lipstein
Many members of the Thread team have been longtime fans and evangelists for Dan Pallota’s record-breaking TED talk from 2013 that raised important questions about how we perceive and support nonprofits. So, we were thrilled when Dan expanded this concept into the full-length documentary UnCharitable, which is now streaming on several platforms. Our team has enjoyed being part of the necessary dialogue about the future of philanthropy and we encourage our community to join us in this reevaluation of philanthropy’s approach to supporting social causes.
Understanding the Critique
At the heart of UnCharitable lies a fundamental critique of the philanthropic sector in the United States: the current norms and expectations surrounding nonprofits hinder their ability to make significant, lasting impacts. Pallotta argues that societal attitudes towards nonprofit overhead, executive compensation, and marketing expenses stifle innovation and prevent organizations from operating at their full potential, which ultimately means we are not solving social problems. This perspective challenges the longstanding belief that low administrative costs equate to efficient and “good” nonprofits. However, as the film demonstrates, low overhead says nothing about impact and effectiveness of a solution. UnCharitable argues (and Thread agrees!) that true effectiveness should be measured by outcomes and transformative change, not by an overhead ratio.
We highly recommend that you gather your colleagues and friends and watch the film! You can use this link to to rent UnCharitable for $5 for 72 hours.
And once you watch, we invite you to join us in taking action. The film encourages us, not just as a sector, but as a society, to rethink funding and advocating for social change. Thread offers the following actionable steps as ways that nonprofit professionals can continue to shift the conversation and drive meaningful impact:
1. Educate Stakeholders
Begin by educating board members, donors, and the broader community about the principles discussed in UnCharitable. Host discussions, screenings, or workshops that delve into the documentary's themes and encourage critical thinking about nonprofit effectiveness beyond overhead ratios.
2. Advocate for Realistic Costs
Challenge the stigma against overhead costs by transparently communicating the necessity for investment in organizational growth and impact. Use data and case studies to illustrate how adequate investment in infrastructure, technology, and talent directly correlates with improved program outcomes.
3. Promote Long-Term Vision and Communicate Impact
Shift the focus from short-term metrics to long-term impact and sustainability. Encourage your organization to develop comprehensive impact measurement frameworks that capture qualitative and quantitative data to demonstrate progress and inform strategic decisions. Tell the story of that impact by crafting compelling narratives that communicate your organization's mission, achievements, and impact to stakeholders and the public. Use storytelling techniques to humanize your cause and inspire greater support and engagement.
4. Embrace Innovation and Risk-Taking
Encourage a culture of innovation within your organization by fostering creativity, experimentation, and calculated risk-taking. Advocate for funding mechanisms that support innovative approaches to tackling complex social issues, even if they initially carry higher upfront costs.
5. Invest in Professional Development
Invest in the professional development of staff and leadership to build capacity and ensure continuous learning. Equip teams with skills in strategic planning, fundraising, advocacy, and impact evaluation to strengthen organizational effectiveness.
6. Engage in Advocacy and Policy Change
Become an advocate for policy reforms that promote a more favorable regulatory environment for nonprofits. Support lobbying efforts to influence legislation related to tax incentives, fundraising regulations, and administrative burdens that affect nonprofit operations.
Changing the Narrative
Ultimately, UnCharitable challenges us to reimagine philanthropy as a catalyst for social change rather than a sector constrained by outdated perceptions and practices. By adopting a more holistic and forward-thinking approach, nonprofit professionals can drive a paradigm shift towards greater effectiveness, transparency, and sustainability in the philanthropic landscape.
The documentary serves as a rallying cry for all stakeholders in the nonprofit sector—from leaders and employees to donors and volunteers—to collectively advocate for systemic change. It urges us to move beyond simplistic metrics and embrace a more nuanced understanding of nonprofit impact and success. By challenging entrenched beliefs and advocating for innovative solutions, we can create a future where nonprofits thrive and effectively address the most pressing challenges of our time.
Let's seize this opportunity to redefine philanthropy and create a future where generosity and innovation intersect to drive meaningful social change. Once you’ve watched the film, send us an email at hello@threadstrategies.com to let us know what you think.