About the Uncharitable movie…

“After three incredibly successful U.S. charitable campaigns were attacked by charity watchdogs, destroying lives and cutting off precious resources, many of the top influencers in the field knew something had to be done to overhaul the nonprofit sector.

Led by Dan Pallotta, whose record-breaking TED Talk on the subject has inspired leading philanthropists and changemakers, this feature-length documentary directed by Stephen Gyllenhaal exposes the dark side of philanthropy and introduces a radical new way of giving. In a powerful call to action, Uncharitable demands that charities be freed from the traditional sackcloth-and-ashes constraints, so that they can truly change the world.

Driven by the poignant, personal stories of Dan Pallotta, Steve Nardizzi, Dorri McWhorter, Scott Harrison, Edward Norton, Darren Walker and other prominent figures in philanthropy, Uncharitable delivers an emotional journey that moves, persuades and inspires its audience to change the way we think about giving.

No topic is more crucial and timely as we confront an increasingly unstable world with the growing revelation that we are all interconnected and that our fate lies in how much we are willing to invest in positive change. Read more about the film here.”

The movie “Uncharitable” certainly created a buzz among philanthropists, nonprofits, and other entities. It stirred numerous debates and discussions about how nonprofits operate and their role in society. Ali and I attended one such discussion and came away with many enriching thoughts and reflections.

“Uncharitable” makes a compelling case for the five critical elements nonprofits need to grow on a scale comparable to large corporations: compensation/covering overhead, time, ability to take risks, marketing & advertising, and profit to attract risk capital. These components are often vilified among philanthropists and non-profit workers themselves. Yet the film articulates why they are essential for real impact. It’s refreshing to see a narrative that supports change-makers and acknowledges the complexities of shaping society in meaningful ways.

The film is a must-watch for every donor, as it underscores the importance of supporting operating expenses and trusting nonprofits to fulfill their missions effectively. It challenges the conventional wisdom that nonprofits should operate with minimal costs or take few risks. Scarcity, competition, nonstop urgency and risk aversion are few things that stifle nonprofits’ potential to make a significant impact. 

For instance, we should celebrate lucrative, well-paid and well marketed initiatives addressing climate change, the same way we’re not shocked that the corporate, for-profit, world tends to accumulate privileges of money, advertisement and power.  

One of the more poignant discussions stirred by “Uncharitable” relates to the “passion tax” – the concept that individuals accept lower pay to work in the nonprofit sector out of a commitment to cause over compensation. Why shouldn’t these workers, who often are highly qualified, committed and making positive contributions not rewarded accordingly?

This ties into a broader debate invited by the movie about the very naming and framing of the sector. Are terms like nonprofits, non-governmental organizations, or charities limiting or underselling the sector’s role and potential? I thought about some of the alternatives we have: Change-makers, Impact-driven Organizations, and Social Innovators. This could not only redefine but potentially reinvigorate the sector with a renewed sense of purpose and recognition. 

Let’s dive into some daydreaming, imagining a different reality for change-makers

A shift in donor mindsets

One of the most significant changes would be a shift in donor mindsets. Donors would start to see the value in funding operational costs, understanding that robust infrastructure and well-compensated staff are essential for delivering high-impact programs. This shift would lead to more unrestricted funding, allowing nonprofits to allocate resources where they are most needed, rather than being constrained by restrictive grants.

Embracing risk and innovation

Changemakers would gain the freedom to take calculated risks and innovate without fear of losing funding. This ability to experiment and pilot new ideas could lead to groundbreaking solutions to social issues. Organizations could invest in research and development, similar to for-profit companies, to find the most effective strategies and interventions.

Increased transparency and accountability

With greater investment in overhead, nonprofits would have the resources to attract talents and  implement sophisticated evidence-based programming, and monitoring and evaluation systems. This would lead to increased transparency and accountability, as organizations could provide clear evidence of their impact. Donors, in turn, would gain a deeper understanding of how their contributions make a difference, fostering trust and long-term partnerships.

Strategic marketing and storytelling

Investing in marketing and advertising would allow nonprofits to reach a broader audience and raise awareness about their causes. Strategic storytelling could engage donors and the public on an emotional level, driving greater support and involvement. By highlighting success stories and the real-world impact of their work, nonprofits could inspire more people to contribute to their missions.

Sustainable financial models

Allowing nonprofits to generate profit to attract risk capital would create more sustainable financial models. Organizations could develop social enterprises or other income-generating activities that provide a steady revenue stream. This financial independence would reduce reliance on grants and donations, giving nonprofits more control over their futures.

Collaborative ecosystems

The future of philanthropy could also see more collaboration between nonprofits, businesses, and governments. By working together, these entities could pool resources, share knowledge, and coordinate efforts to address complex social issues more effectively. This collaborative approach would leverage the strengths of each sector, leading to comprehensive and sustainable solutions.

Let’s imagine a social innovation sector that is not only more effective but also more resilient and innovative. This new model of philanthropy would be characterized by:

• Empowered changemakers: Organizations would have the flexibility and resources to pursue their missions without undue constraints.
• Engaged donors: Donors would be active partners in the work, understanding and supporting the need for operational funding and risk-taking.
• Impact-driven strategies: Programs would be designed and implemented based on solid evidence and best practices, ensuring the highest possible impact.
• Sustainable growth: Nonprofits would have diverse revenue streams, financial stability and supporter databases, allowing them to plan for the long term and scale for more impact.
• Meaningful collaborations: The collaboration between changemakers and between different sectors would revolutionize our world. 

Now let’s dream bigger and beyond the movie, —to imagine a world where the need for civil society to step in for essential services and rights becomes obsolete. In an ideal scenario, resources like water, health, education, housing, and technology would be accessible to all, rendering nonprofit services unnecessary; or at least creating equitable playgrounds where nonprofits can build innovative programs to push society further. This vision requires a radical realignment of priorities and resources from governments, corporates, and communities alike. It’s a lofty dream but a compelling one that celebrates those who dare to envision a kinder, more equitable world.

Reflecting on “Uncharitable” reminds us of the ongoing need to critically assess and innovate within the philanthropic landscape. Let us take a moment to appreciate not just the dreamers but all those actively working towards a more just and generous world. As we continue these conversations, may we all be inspired to think differently and act boldly in our collective pursuit of positive change. 

What would be some terminologies or concepts you would like to challenge or bring forward?