“…and you’ve just put the nonprofit sector at an extreme disadvantage to the for-profit sector on every level”

…you can’t use money to lure talent away from the for-profit sector, you can’t advertise on anywhere near the scale the for-profit sector does for new customers, you can’t take the kinds of risks in pursuit of those customers that the for-profit sector takes, you don’t have the same amount of time to find them as the for-profit sector, and you don’t have a stock market with which to fund any of this, even if you could do it in the first place, and you’ve just put the nonprofit sector at an extreme disadvantage to the for-profit sector on every level. If we have any doubts about the effects of this separate rule book, this statistic is sobering: From 1970 to 2009, the number of nonprofits that really grew, that crossed the $50 million annual revenue barrier, is 144. In the same time, the number of for-profits that crossed it is 46,136. So we’re dealing with social problems that are massive in scale, and our organizations can’t generate any scale. All of the scale goes to Coca-Cola and Burger King.

Dan Pallotta, “The Way We Think About Charity is Dead Wrong”, TED (Long Beach, CA: 1 March 2013) [Available at https://www.youtube.com/watch?v=bfAzi6D5FpM]