October 30, 2023

Nonprofit math

If it’s not adding up, you’re doing it right.

2 min read

Last week, Vu Le created a short video on “Nonprofit Math,” following a trend on social media. The 50-second clip he made went viral, and has been watched nearly a million times. This article is based on that clip.

For so long we nonprofit professionals have been twisting our brains into knots trying to comply with the various expectations and requirements imposed on us in the sector and by society. When it’s all laid out bare, we realize none of it should be normal, that it’s all ridiculous! Here are some ways “nonprofit math” manifests, including the items in the video:

1. Nonprofit math is when you spend $80,000 to net $50,000 at your annual fundraising gala.

2. Nonprofit math is spending $20,000 and months to hire someone who quit because they were underpaid by $10,000.

3. Nonprofit math is when a funder gives a nonprofit HALF the grant amount requested but expects full activities and outcomes.

4. Nonprofit math is when the City provides a nonprofit a grant that reimburses them 73 cents for every dollar spent delivering services, so the nonprofit is basically subsidizing the government while doing work the government should be doing.

5. Nonprofit math is a nonprofit paying its staff so low they qualify for the services the nonprofit provides.

6. Nonprofit math is when funders expect nonprofits to keep overhead rates below 15%, when most foundations, because they don’t run programs, are 100% overhead. 

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7. Nonprofit math is when nonprofits are expected to spend $2,000’s worth of staff time in grant writing and reporting for a $1,000 grant.

8. Nonprofit math is when less than 10% of philanthropic dollars across the sector go to communities-of-color-led organizations when the majority of people most affected by systemic injustice are people of color.

9. Nonprofit math is when the board, a group of individuals who see 1% of work that’s happening, gets vast power over the staff, who have a much better understanding of what’s happening on the ground.

10. Nonprofit math is when an awesome staff asks for a raise of $5,000 and gets denied, so they quit, but no one would work at the current salary, so the organization has to raise the salary $10,000 and now has a less experienced staff.

11. Nonprofit math is when men on average still earn more than women, and hold more leadership positions at the largest nonprofits and institutions, despite the sector being majority-women.

12. Nonprofit math is when a question on a grant proposal is 2,000 characters long, but you only are given 500 characters to answer it.

13. Nonprofit math is a funder or donor refusing to pay for overhead, yet still requires reporting on how the money was spent. Which is accounting. Which is overhead!

14. Nonprofit math is when a funder takes longer to make grant decisions than it takes to conceive and give birth to a baby.

15. Nonprofit and corporate math is thinking nonprofits should act more like for-profits, when for-profits fail at a rate of 50% within 5 years, 70% within 10 years.

This list contains 15 of 21 nonprofit math equations Vu Le published in his original article on Nonprofit AF.

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ABOUT THE AUTHORS
Vu Le-Image
Vu Le

Vu Le (“voo lay”) is a writer, speaker, vegan, Pisces, and Executive Director, Rainier Valley Corps, a nonprofit in Seattle that promotes social justice by developing leaders of colour, strengthening organisations led by communities of color, and fostering collaboration between diverse communities. Check out his other posts at Nonprofit AF.

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