The Nonprofit Sector's Dirty Secret: When Helping Doesn’t Help at All

Growing up in an underserved community, I was surrounded by countless programs designed to "help" us. My mother, like many others, tirelessly sought out every resource available, enrolling me in activities at the local YMCA and various community initiatives meant to guide us toward a brighter future. Yet, despite all these efforts, I couldn't help but notice something troubling: the community itself never really changed. The major issues—poverty, lack of education, limited economic opportunities—persisted year after year.

For those who, like me, grew up in "the hood," this is a familiar story. The few who “make it” rarely come back. They take their newfound knowledge and opportunities to places where the infrastructure supports their growth—places that are already thriving. This isn’t just my experience; it’s a pattern that plays out in underserved communities across the nation. Despite the billions of dollars poured into these neighborhoods, they often look exactly the same decade after decade. And when communities do change, it’s often through gentrification, not because of any community-led initiative. The original residents are pushed out, and the area is transformed into a different community with different people.

The root of this problem lies in how the nonprofit sector approaches funding and programming. Too often, nonprofits are funded based on specific, narrow programs that appeal to funders but fail to address the broader, systemic issues within a community. This leads to a fragmented approach, where thousands of organizations work in isolation, competing for the same limited dollars, and ultimately failing to make a lasting impact.

Worse yet, many of these organizations aren't even genuinely invested in the communities they serve. They may set up shop in an underserved neighborhood, run a few programs, and report back to their funders, but they don’t take the time to ask the hard questions: With all the money we’ve received and all the programs we’ve created, why does the neighborhood still face the same issues, or even worse? How can funders live with this reality?

And it’s not just the nonprofit sector that’s falling short. We can’t count on our government to address this either—whether through policy or other means. Policies that are supposed to improve these communities often fail to make a real impact, leaving neighborhoods looking the same, year after year. The nonprofit sector, the sector of helping people, must step up to do what our society needs. And even more, the connector organizations that are essential for real change must also integrate governments into their efforts, holding them accountable and ensuring that they stay aligned with what is right and effective.

The Missing Link: Investing in Connector Organizations

To truly break this cycle, we need to rethink how the nonprofit sector operates. Instead of continuing to support isolated, program-specific initiatives, we should be investing in what I call "connector organizations." These organizations are vital because they ensure synergy between various nonprofits, creating an ecosystem where real change can take root and flourish. A connector organization would bring together local nonprofits, each with its own area of expertise, to collaborate on solving the community’s most pressing issues.

Take youth unemployment, for example. Instead of multiple nonprofits working independently—one focusing on job training, another on mentorship, and a third on connecting youth to local businesses for internships—the connector organization would coordinate these efforts, ensuring that all the nonprofits are working together strategically, rather than in competition.

This approach would not only address youth unemployment from multiple angles but also build a stronger, more connected community. The nonprofits would share insights and resources, continually improving their programs based on real-time feedback. By working together, they could create a pipeline that supports young people from training to employment, with the entire community benefiting from the economic growth that follows.

In addition to fostering collaboration, connector organizations could also play a crucial role in addressing the chronic funding shortfalls that many nonprofits face. By pooling resources, securing joint funding, or redistributing grants, these organizations could help ensure that smaller, grassroots nonprofits have the financial support they need to sustain and expand their vital work. This would not only strengthen the entire ecosystem but also help to keep these smaller organizations—often the true heroes on the ground—operational and effective.

Moreover, these connector organizations must also work to integrate government agencies into the fold. By doing so, they can ensure that governmental policies and actions are aligned with the on-the-ground realities and needs of the communities they serve. Connector organizations can serve as a bridge, ensuring that government efforts are not only well-intentioned but also effective and truly beneficial to the communities in need. They can help keep governments in line with what’s right, pushing for policies and actions that support, rather than hinder, community development.

But we must be careful in selecting these connector organizations—they must be genuinely passionate about and invested in helping the community. They must be committed to addressing the root causes of the issues they’re tackling, not just running programs for the sake of appearances.

Unfortunately, the nonprofit sector often funds organizations that, despite their size and influence, are not truly interested in making real change. Meanwhile, the true heroes—leaders of small grassroots organizations who are deeply embedded in their communities—are often overlooked. These grassroots leaders could achieve so much more with just a little extra funding, yet they rarely receive the support they need. Instead, large organizations that are supposed to help the community end up exploiting and extracting from it. They create the very programs we’re talking about—programs that never result in real change.

A Call to Funders: Rethink Your Approach

The nonprofit sector has the potential to be a powerful force for good, but only if we’re willing to rethink how we approach the work. Funders need to recognize the value of investing in connector organizations—those that are genuinely committed to creating systemic change, have the ability to bring others together in synergy, can provide much-needed financial support to smaller organizations, and can hold governments accountable to the communities they serve. By supporting these connector organizations, funders can help build the infrastructure needed for real, lasting change in underserved communities.

We’ve seen the limitations of the current model. Now, it’s time to embrace a new approach—one that prioritizes collaboration, innovation, and a commitment to transforming entire communities, not just individual lives. The future of our communities depends on it.