A recent article on Change.org addresses the commonly made assertion: There are too many nonprofits.  The author argues, rightly in my judgment, that the total number of nonprofits is irrelevant.  "What we need to be talking about," he asserts, "is how to get more good nonprofits, and fewer bad ones."

But while I agree with his general sentiment, I wonder if he's still discussing the point on the wrong terms.  While more good and fewer bad nonprofits (setting aside the definition and assessment thereof – who thinks their nonprofit is bad?) would be a positive development, it still addresses the wrong issue. The number of organizations is irrelevant.  What matters is impact.

The ability to change the world is what matters most.  If starting a new organization is the most effective use of time, energy, and resources to produce impact, I see no reason to stop that organization from forming based on some principal of the “right’ number of nonprofits.  The right question is just that – is starting a new organization the most effective way to create the change you seek?  While new organizations can foster innovation, they also build de facto barriers between the sharing of knowledge and best practice which can lead to increased impact sector-wide.  A great solution on a small scale only has a small impact.  While it may be less glamorous to be a solider instead of a general, how can you truly have the most impact?

The surge in the number of 501c3s over the past 35 years is indeed remarkable.  But I hesitate to call it good or bad as it really misses the point.  The more important question is: have we used our time, treasure, and talent in the most effective way to solve the great challenges facing our world?  In our work with organizations seeking social change, a constant theme is that the problems they seek to solve are bigger and more complex than they can possibly address themselves.  As a result, we often see organizations stretching themselves thin and beyond their expertise.  We don't necessarily need more nonprofits; nor do we necessarily need fewer.  What we do need are better ways for the nonprofits which already exist to leverage each other's knowledge and build upon each other's success to increase our collective ability to positively impact the world.