What if one word is quietly limiting the impact of an entire sector?

 

“Nonprofit” might be the most misleading label we’ve accepted without question.

 

The term itself has deep roots. Historically, it reflects a belief system shaped in part by early Puritan values, where virtue was associated with self-denial, modesty, and sacrifice. Doing good wasn’t supposed to be profitable; in fact, profit could be seen as morally suspect. As Dan Pallotta highlights in his book Uncharitable, this thinking carried forward into how we structured charitable organizations, built on the idea that they shouldn’t generate excess, accumulate wealth, or operate like businesses.

 

That mindset no longer serves us.

 

When I was CEO of Make-A-Wish Southern Nevada, we made a profit every year. What we did with that profit was what mattered most. We always reinvested it. Sometimes that meant meeting an immediate need. Other times, we placed it into investments so it could grow while we planned for future impact. Profit wasn’t the goal; it was the fuel.

 

We also rewarded our team based on performance beyond the goal. Bonuses didn’t start at hitting the target—they kicked in after we exceeded it. That shift encouraged our team to think bigger, moving from scarcity to possibility.

 

What if we remove labels and beliefs that create a scarcity mindset?  Scarcity keeps organizations small. It keeps them cautious. It keeps them surviving instead of thriving.

 

So yes, create a profit. Then reinvest it in your people, your programs, and just as importantly, your infrastructure. Strong infrastructure is what allows organizations to grow, scale, and make a more profound and lasting impact.

 

And donors, we have to stop telling nonprofit leaders how to manage their money. They are closest to the work. When we restrict funding to programs alone, we unintentionally weaken the very organizations we believe in.

 

Impact doesn’t come from programs alone. It comes from healthy, well-resourced organizations built to sustain, adapt, and lead.

 

Maybe it’s time we stop calling it “nonprofit” and start calling it what it truly is: a social impact enterprise. We empower communities while solving systemic problems, all while supporting our staff and honoring our donors’ visions. We are not “non” anything. We are for stronger communities, for healthier organizations, for bold ideas, and for lasting impact. 

 

Profit isn't the goal. It's the fuel!