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For-Profit and Not-For-Profit – A Common Problem

By July 2, 2025No Comments

Over the years I’ve had the opportunity and pleasure to be on the boards of several not-for-profit organizations. Some are charitable organizations as per IRS code 501(c)3 and others are not (think trade groups, service clubs, professional organizations).

I’ve noticed a commonality between small non-profits and small businesses. Both have owner (executive director) dependence. This is the topic I hear about the most from guests on my podcasts and hosts of shows on which I’m a guest.

This is what holds back too many businesses. The person in charge having control and doing things the way they do because, “it’s the way we’ve always done it.”

I’ve seen too many stalled organizations because of this. And it often means the best and brightest don’t want to work there, join the group, be on the board, etc.

It comes down to, the less the owner/ED does on the day-to-day, the better. This means they must have a team, they must delegate, so value increases (and non-profits can get more done).

Years ago, I worked with a client on delegating, which he grudgingly did. Soon he was getting complaints from his team they were too busy (the same people who said the owner was the bottleneck for everything). I said, let’s work with them on delegating. Bottom line, his profit quintupled in one year.

“Do less and make more money.” John Martinka

“Failure is not a crime. Failing to learn from it is.” Walter Sriston