Nonprofit Myths Finally Debunked!
/Reading NonProfit PRO’s recent piece on “Debunking the 10 Biggest Nonprofit Myths” felt like a breath of fresh air. It was like finally hearing someone say out loud what so many of us have known for years: the misconceptions surrounding nonprofit work aren’t just frustrating—they’re damaging. For those of us working in the sector every day—balancing mission-driven urgency with operational realities—it’s a relief to see common misconceptions so clearly challenged and laid to rest.
Take Myth #1, “Nonprofits can’t make a profit.” It’s astonishing how persistent this idea is, despite the fact that financial sustainability is what allows nonprofits to exist in the first place. As the article points out, nonprofits can and should generate surpluses—those funds are reinvested into programs, people, and infrastructure, not distributed to shareholders. Without this reinvestment, nonprofits can’t grow or sustain impact.
Then there’s Myth #4, “Overhead is bad.” This is perhaps one of the most harmful tropes we face. When donors fixate on the percentage spent on administration instead of outcomes, it penalizes nonprofits for investing in strong leadership, staff development, evaluation, and communications—investments that are essential for effectiveness and scale.
And I couldn’t help but nod along to Myth #9, “Nonprofit staff are mostly volunteers.” This erasure of the skilled, underpaid, and overworked professionals who drive mission work every day is part of what fuels burnout and undervaluation. Nonprofit staff are strategists, technologists, fundraisers, policy advocates, and frontline workers—and they deserve the same respect and compensation as their for-profit peers.
Let’s be honest: the myths around nonprofit work have real consequences. The idea that nonprofits should “run lean” discourages investment in staff, infrastructure, and innovation—critical elements that any mission-focused organization needs to achieve real impact. When people assume nonprofits are run entirely by volunteers or shouldn't spend on marketing or overhead, they ignore the sophistication and strategy required to solve entrenched problems like poverty, inequity, and climate injustice.
I particularly appreciated the article’s reframing of the term “nonprofit” itself. Nonprofits are not defined by what they aren’t—they’re purpose-driven enterprises reinvesting every dollar back into the community, into systems change, and into people’s lives. The myth that “nonprofits don’t make money” misses the point. Nonprofits generate value—economic, cultural, and social—and they do it under stricter constraints than many of their for-profit peers.
As a sector, nonprofits need to keep pushing back on outdated narratives. Not just for the sake of their own operations, but for the public trust and donor support that are vital to their work. So, share this article widely. Talk to your boards, your funders, your partners. The more we confront these myths, the more room we make for meaningful, sustainable, and unapologetically powerful nonprofit work.
This article is more than a myth-busting exercise, it’s a call to action. It invites us to reframe the way we talk about the sector and to educate funders, board members, and the public about what it really takes to deliver mission-aligned impact. Let's make sure these truths echo beyond our walls.