Five Reasons Non-Profit Farms Fail
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OMG! A light bulb went off! I have worked for and with 6 non-profits in education funded by grants with one of the goals in each being sustainability. Each of your reasons can be seen in each of those non-profits failing! Thank you for giving me the words.
As a bookkeeper and financial controller for several non profits, I have been ashamed of what they think they can get away with and then wonder why “is this ‘good work’ going down the tube.” Thank you soooo much! At least some people get this!
I just saw an article in the paper about a local guy planting trees all over and starting food plots for this save the world reason. You'll only get so much free labor from scout troops and individual do-gooders before it dries up. And the people in the poor community aren't going to flock to some empty lot to pick apples, kale and spinach a few weeks out of the year. They are going to McDonlads and Taco Bell and they are fine with that. You can't solve socioeconomic problems with a free garden plot.
I love that there’s a capitalist in farming. It warms my heart.
This is a very well done explanation that could apply to any enterprise. Thanks.
I've only just started watching this video. Interesting topic. I'll watch the rest later. I guess what strikes me is not that calling yourself non-profit is bad per se. A lot of people want to differentiate themselves as non profit because they are reacting against the ethos of a lot of companies who have done huge social and environmental damage by only focusing on profit. They don't want to be seen as just existing to make money. (I certainly dont want to be seen as human being who just exists to make money though I understand that if I don't make money my business will not be successful and I won't have business for long). Of course, because we live in a world where money has huge leverage when it comes to buying resources, accessing power, getting loans from banks etc, most companies would cease to exist if they weren't making money. (Let's also remember that if it wasn't for the huge amount of stuff people do for free – like raising kids, helping their friends, looking out for their neighbours, volunteering – then the social and economic systems that dominate our lives WOULD collapse.) I think the problem with non-profit organisations is that their success isn't necessarily linked to their results. If you are a company performing badly you will go bust so you try and perform better – or become corrupt. Many non profits get lots of money from donations whether they perform well or not. This is a minefield and much easier to assess in the world of business where outcomes are very simple – a product or a service. Many politicians do a terrible job but they keep their jobs. many parents do a terrible job but in most cases they get to keep their kids. Being a teacher involves more than just helping kids get good grades – how do we evaluate the many many ways that a student can benefit from their school life? Remember, in every facet of our lives, there is more than one story. I don't think this is an argument about whether capitalism works or not, its about how to evaluate whether non profits/NGOs/voluntary organisations are making good use of their money. And how do we define good? But as usual most of what Curtis says is helpful and thought provoking on one or many levels.
great video buddy
100% agree. I'm part of a non-profit and we're having all of these issues. It's a community garden. The hardest part is trying to convince people that the produce isn't "worthless".
How do you irrigate cat tunnels? I plan to only use my new one on shoulder seasons and drip seems like a hassle if half or more of the growing season for tunnel beds it won’t have plastic over it.
Everything rises or falls on leadership. I've seen exactly this same thing here in local non-profits. Thanks for your earnest instruction.
Hey Curtis i really appreciate your hustle! I'm looking to get started with a micro greens farm here in the states and I share a small apartment with no space. What kind of storage situation should I be looking at?
Great information
Great video Curtis. I run my farm this way. I work with local authorities creating community gardens in our city and like you hear a lot of airy fairy thoughts about let's do this on a huge scale and give it away for free to poor people etc. All good and well but it's done with volunteers who are mostly unemployed for various reasons and organising anything with a group of people who haven't worked for a while is so frustrating. no concept of time or schedules and the authorities only have meetings 9-5 which cuts off the majority of even possible view volunteers because they work during the day and cannot attend the meetings. its all a big headache but we have to keep trying to strive forward. p.s. hope u no disinfection big will he will squish you like a bug. lol
@atripa645….haha jeez. Let's be effective.
I see these issues all the time as a farmer going into my 5th year of small CSA. I am a for-profit leasing from a religious non-profit. Some of these issues affects me the most since the non-profit has boundaries and makes the final decision on purchases from donated money. Yet I am the one with more skin in the game and have a much closer connection to the market and the effectiveness of certain tools over others.
So the question is…HOW can we get the non-profit to get skin in the game? And on a daily basis?
The reason they don't, I believe, is because there is not enough democracy (or effective communication & 1 person = 1 vote) in the institution. Since the non-profit is an old religious organization, they come from a hierarchical system of top down, much like how most businesses today are run (top down). I believe that this system inhibits effectiveness and growth.
So again, How do we make the non-profit put skin in the game?
Tie all their donations down in spreadsheets that can (mostly) prove and measure how much revenue is be generated to make up for the costs?
Looking and thinking for more suggestions. Thanks! AND THANK YOU CURTIS! YOU'RE CRUSHING IT
I'd also like to point out that so many people in the comments automatically assume this is capitalism, "this is a win for the free market" and a snide on communism. I feel those comments don't get to where we need to be. What I believe in is democracy and a shared responsibility to all equally own the project, business, etc.
I think this video is a testament that we all need democracy in the work place. I'm for being sustainable. Equally sharing the loss (if there is one), equally sharing the profit (if there is one).
I'd like to point out. Capitalism has caused mountains of corruption. Communism just as well has caused mountains of corruption.
Donations to a non-profit, or inheritance to a family owned business don't help unless there is skin in the game. And until we get rid of the notion the guy at the top gets to decide how much money they make we will continue to have this issue. The entire group should decide how much each person makes and how much they contribute.
I believe bringing democracy into the workplace can we minimize corruption. No need to fret the world can't support x number of humans, or that we are a virus bs.
Let's be effective eh? Alright, enough pondering. I'm out.
You should change the title of the video to "why Capitalism works and Socialism fails" and show it at economics departments in universities throughout the nation. Great video.
Though still informative, these stand in the room and talk at the video camera blogs, are not nearly as good as your walk around the farm and give us practical advice videos. Thanks for all you do Curtis! I've learned it on from watching you and I'm looking forward to more!
I can't wrap my head around the concept of starting a business to lose money…
Brilliant work
You know I had to do it to em
Oh my gosh! I thought this video was about government until I read the title. Silly me.
Hey Curtis, thanks for the video and for touching on this subject. Are there situations where could see a non-profit market garden succeed and become sustainable? If so, what would be your biggest considerations for success?
Also, about halfway through your book and I am enjoying very much. Thanks for all you do.
Interesting facts … I did some volunteer work for a non-profit a couple of years ago (community urban farming) … It didn't work out.
I think you are right about all of these facts. Thanks for sharing!
Wait, why would anyone grow the good food to give it away to some downtrodden strangers for free? If anything, you would want to scale up so that you could sell the bad, or lesser quality food at high cost, and save all the good food for yourself and your trusted, productive people. I certainly don't expect that grocers will sell me the good food, in fact I know that doesn't happen in Canada. And at the same time, there will always be a market for high priced bad food. Add some salt sugar and oil, fry it, and it will sell. Sure it might kill a few people, but you're protected by the government food inspectors, so it's worth the risk. I'm the first to admit, I don't like the way business works, but most people wouldn't have it any other way.
So interesting to see your view on not for profits. So interesting to see that you have another video on "Real wealth – The Eight Forms of capital" Perhaps another perspective that is less biased would state that "the mission and purposes of a not for profit and of a capitalistic model are different." If you, Curtis Stone, were to consider the theories of Agriculture per A. Kellerman you would see in his abstract:
"Agricultural Location Theory 1: Basic Models
A Kellerman First Published October 1, 1989 Research Article
https://doi.org/10.1068/a211381
Agricultural location theory deals with both the location — allocation process of land uses by farmers, and the spatial organization of agricultural land uses. The major term in its classical versions is economic rent relating to some form of surplus. Ricardo's theory emphasized the physical qualities of land and urban demand as major determinants in rent production. Von Thünen's theory emphasized distance from farm to market as well as transport costs, yield, market prices, and production costs as rent determinants. Modern versions of the theory provided simple models which relate explicitly to transportation costs. The theory has been criticized mainly for its many limiting assumptions."
Or you could perhaps consider the perspective of the FAO: http://www.fao.org/rwanda/fao-in-rwanda/rwanda-at-a-glance/en/.
When we politicize agriculture or try to define it with economics we are missing the true value of food production. In truth, global agricultural process needs to "Begin with the Village". Available at: https://bahaiworld.bahai.org/articles/begin-village/
You have a large platform with your YouTube videos. I am not so much criticising your perspective as much as I am asking you to consider a more global perspective. First world urban gardening is sustainable when we seek the foresight to live with cooperative perspectives.
OMG. What kind of reasons are those?
1) If a nonprofit doesn't have the right profit management system – it has nothing to do with them being registered as a non-profit, it just says that the person responsible for this function is not in the right place.
2) If a nonprofit executive management is not motivated by their idea on how to make this world a better place through fulfilling their mission and doing their job as an essential part of this process – again, they are not in their place. The same with for-profits – if a head of a business is interested only in money rather than the quality of the product, for instance, this will end up with a shitty product, and tons of commercials to sell it anyway, and that is what we see in 90% of goods in supermarkets. U can spend 24 hours working on your computer to fix a problem, being driven by the idea of helping people as well. I'm doing it every day, and would never sell the same amount of my time for any currency. That's cheap.
3) Market connection could be provided by the support of an external organization that is also easily could be nonprofit.
4) Same with market awareness and community engagement. Community can itself create support – community supported agriculture, for instance, is not that new of a term.
5) Directors burn out could be the same as in for-profits, if an executive team don't have a clear plan on what they are doing.
Subjective, who's payroll are you on ?
EXCELLENT Talking Points & Prompts For Reverse NP Planning