Is there such thing as a Non-profit monopoly?

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Permalink Reply by Steve Stuck on November 14, 2009 at 1:48pm

No, because a monopoly means literally one seller.

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Permalink Reply by Pat Coyle on November 14, 2009 at 5:29pm

I don't know about monopolies, PK, but I noticed a "Live United" billboard recently. It basically said, "Give."

Doesn't make sense to me that a charity should spend money on ads that ask for money. If they're going to spend on promotion, I would think they could come up with something more compelling.

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Permalink Reply by Jon D. Speer on November 14, 2009 at 10:24pm

It does seem like there are a limited number of huge NPOs. I'd be interested to learn about percentages of all charitable donations. Which NPO gets the most? Are there local NPOs that go out of business because they can't compete with larger brands?

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Permalink Reply by Steve Stuck on November 15, 2009 at 8:39am

Pat's other posting about non for profits showed the percentage through the Wall St. Journal. 1/3 of the $300 Billion a year given in donations is too the churches. They are the largest and then the next number was 16%.

Bottomline, you cannot force people to give to what people think is a worthy cause. Giving is optional and there is no cartel or monopoly out there on charity.

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Permalink Reply by Jon D. Speer on November 15, 2009 at 10:06am

Good point.

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Permalink Reply by PK Koduri on November 15, 2009 at 12:02pm

You would think that is the case. But the way United Way uses corporate campaigns and Payroll deductions is borderline coercion. They have made it a finely tuned machine. At one point at my previous employer they would send people into your office wanting to know whether you opted in or not. That in my mind is a monopoly.

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Permalink Reply by Steve Stuck on November 15, 2009 at 4:50pm

That still doesn't fit the actual definition of a monopoly. Yes, the bigger non for profits have more of an audience and/or companies helping them, but they still rely on people giving.

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