Who Cares If Nonprofits Become Irrelevant?
Friday, December 17th, 2010Recently I was invited to discuss social policy implications of our NonprofitNext research initiative and Convergence report findings with a group of arts organization leaders, arts funders, and policymakers in the Twin Cities. Despite the frigid weather my colleague Brent Copen and I received a warm Minnesota welcome throughout our two-day trip.
At one point I raised the possibility of networked activity replacing the function of some nonprofits. This is the dreaded disintermediation we all wince when hearing about.
If an artist can sell his or her work through an easily-constructed web site, why do we need art centers and galleries? If a volunteer can surf the net for places to give time, what role do volunteer centers play?
There are certainly value added activities associated with each of these entities so I don’t mean to imply that they can be readily replaced tomorrow.
On the other hand we should not delude ourselves that there is something sacrosanct about our current line-up of nonprofits. If major cities and small towns alike can lose their newspapers they can also lose their once-cherished nonprofits.
As I made this point a young woman commented that she was not sure there was reason to mourn the loss of these groups if they were made irrelevant by advances in technology, changing community needs or generational preferences.
My initial reaction was that people who had worked or volunteered on behalf of these organizations for major portions of their lives might feel differently. But I immediately realized that was a defensive reaction.
There is a classic case of nonprofit law involving cy pres, a legal doctrine which asserts that if a donor’s intent can no longer be met his or her gift should be devoted to another cause “as close as possible” to the original cause.
The case I’m thinking of involved a lighthouse in Boston Harbor. A trust had been established to bring the local newspapers to the lighthouse keeper from Boston each week by boat. Eventually the lighthouse was automated and the keeper retired. Through this technological advance there was no way for the trust’s original intent to continue to be pursued. The court determined that delivering newspapers to an old sailors’ home was close enough and the trust’s purpose was shifted. Here is a hundred-year-old case of technology impacting a nonprofit’s purpose and fundamentally altering it.
I assume no one cried over the loss, but then again, the lighthouse no longer had any employees to shed those tears.




