The Ripple Effect

-News and Commentary-

Broken Trust: When Nonprofits Forget the People

By TP Newsroom Editorial | Ripple Effect Division

You ever watch a nonprofit gala in full swing? You know the kind—glass clinking, PowerPoint slides, a mission statement flashed on every screen, and some guy in a suit walking across stage talking about how many lives were “touched” this year. Behind him, there’s a looping video montage of smiling kids, solemn-faced elders, maybe a shaky clip of a food drive set to piano chords. They say the word “impact” like it’s a confession and a currency all at once. I used to be impressed by that kind of thing. Now I just watch who’s getting the applause—and who’s nowhere near the room. What they won’t say on that stage is that this whole machine doesn’t run without pain. Pain is the fuel. Pain is the pitch. And somewhere along the way, the line between helping and harvesting got blurred. Because this isn’t about bad people.

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It’s not even about bad intentions. It’s about the fact that entire organizations are built on a model that requires someone to be struggling, consistently. And the worse your story, the bigger the check. The more visible your wound, the more valuable your presence. Not for healing. For reporting. For optics. For that next round of funding. I’ve seen it in real time—people being coached to “tell their story” not for their own growth, but because the board needed a tearjerker. Communities being surveyed, photographed, used in grant decks, and then forgotten once the funding comes in. I’ve seen trauma turned into marketing, poverty turned into portfolio material, and success quietly buried because too much progress might threaten next year’s ask. This isn’t even hidden. It’s normalized. Wrapped in words like “amplifying voices” or “raising awareness.” But awareness without action is just exposure. And if your platform depends on the ongoing pain of the people you claim to serve, then you’re not in the business of healing—you’re in the business of maintaining the need. That’s what nobody says out loud.

That some nonprofits don’t just survive on trauma, they scale with it. They grow their staff, buy new office space, hire development teams—all based on the assumption that the pain will keep coming. That it has to. Because without it, there’s nothing to fund. So we throw galas. We print reports. We tell stories. But the people inside those stories? They’re still there. Still hungry. Still on the waitlist. Still being used to prove “impact” without ever fully receiving it. And the worst part? Many of them don’t even know they’ve become the product. The trauma economy is slick like that. Wrapped in kindness. Packaged as care. But underneath it all, the question stays the same—who’s actually healing, and who’s just getting better at telling the story?

It’s easy to call out a system from the outside, but if I’m being honest, I get it. I really do. I run a business that’s built on purpose too—built on story, meaning, belief—and there isn’t a day that goes by that I don’t think about how to grow without losing the reason I started in the first place. Because growth always comes with trade-offs. More success means more people, more systems, more infrastructure. And all of a sudden, you’re not just doing the thing—you’re maintaining the engine around the thing. That’s where the shift starts. That’s when mission starts competing with management. For nonprofits, the stakes are even higher because the money doesn’t come from the people you serve—it comes from the people watching. The donors, the board, the grant officers, the foundations with metrics and language and preferences that don’t always line up with what the community actually needs. So you tweak the messaging. You build the brand. You hire a strategist, a fundraiser, a digital comms director. And slowly, you stop serving just to serve—you start serving to report. You start building programs not because they’re what’s most effective, but because they photograph well or align with funding priorities. You add layers. You add overhead. And now you need more money just to sustain what you’ve built. That’s not greed. That’s gravity. That’s the pressure every growing organization feels—to survive, to look stable, to be taken seriously. But the bigger you get, the further you drift from the ground. From the people. From the rawness that made the work urgent in the first place. And unless someone pulls you back, unless you intentionally keep one foot rooted in the community you serve, the machine takes over. It doesn’t happen all at once. It’s subtle. You stop asking what people need and start asking what funders expect. You stop showing up and start presenting. And before you know it, the mission isn’t guiding the work anymore—it’s justifying it. That’s the part nobody wants to admit. That maybe some of these nonprofits didn’t start out exploitative. Maybe they just grew too fast, too far, without checking the compass. Maybe they became successful at scaling suffering instead of solving it. And maybe that’s the real tragedy—not that they built an empire, but that they forgot who they built it for.

At some point, the mission can get buried under the machinery. It starts with good intentions. A nonprofit launches to serve a need, uplift a community, address a gap that no one else seems to care about. But then it grows. It starts adding staff, securing grants, building infrastructure, adding departments, hiring HR, marketing, development directors, operations leads, and eventually executive leadership. And once you build the machine, you have to feed it. The cost of simply existing rises. Executive salaries in large health nonprofits often exceed $150,000 per year, and in some cases, CEOs earn millions annually. According to one 2023 nonprofit compensation report, executive director salaries commonly range from $141,000 to $241,000 depending on size and scope. That’s not necessarily a red flag, but it raises the question: who is all this for? A 2023 labor report found that over 72 percent of nonprofits can’t offer competitive pay, which means the people doing the real work often burn out and leave, taking with them the trust and relationships that were the foundation in the first place.

Donors still expect lean operations. They want 80 to 90 percent of every dollar to go toward programs, but many organizations quietly spend most of their funds on development, admin, and brand building. Some watchdog reports show that less than 10 percent of donations in certain organizations make it to the actual communities they serve. And the public sees it. In a recent survey, 57 percent of Americans said they trust nonprofits, but only 20 percent said they highly trust them. And nearly half—43 percent—said they’ve lost trust after a negative experience. That erosion of faith is slow, but real. It happens when people watch their trauma become someone else’s salary. It happens when volunteers see a camera show up for a photo op, but no one returns after the grant is secured. And it happens when organizations get so big that they forget what their original mission was.

There’s a balance. Growth is necessary. More money means more reach, better service, wider impact. But with every expansion, there’s a risk of forgetting the people at the center. When the budget becomes the priority instead of the body count, when hitting fundraising targets matters more than sitting in someone’s living room and listening, that’s when the shift happens. The mission becomes a message. The story becomes a strategy. And the people become a pitch. We are going to have to decide if the goal is the work or the image of the work, because they’re not always the same. And the line between them is blurry as hell. At some point, every mission-driven person hits a wall where they have to choose between staying small and rooted or scaling up and compromising. There’s no judgment in either path, but pretending they’re equal is dishonest. One stays close to the ground, tied to the people it serves. The other becomes a machine, chasing grants, marketing impressions, board satisfaction, metrics, and buzzwords that don’t always reflect change. The question of who this work is really for gets lost when leadership stops listening to the people they claim to represent. And what started as a mission becomes a brand. When that shift happens depends on pressure—pressure from funders, pressure from visibility, pressure to prove your worth every quarter. The problem is where that pressure is applied. It’s rarely felt at the top. It shows up in the programs being cut, the outreach being trimmed, the services becoming selective. And we all know why—because control follows money, and money likes comfort, not disruption. But here’s the thing. Most of us are tired of being studied, surveyed, spotlighted, and still forgotten. Tired of nonprofits asking us to show up, cry on cue, share our struggle, then disappear when the press leaves. There’s a quiet kind of exploitation that happens when our pain becomes currency. And the worst part is, it’s not always malicious. Sometimes it’s just momentum. An organization gets big, it gets busy, it builds structure, and one day it realizes the people it was built for can’t even get a meeting.

If we’re serious about changing that, then it starts with redefining success. Maybe it’s not about scale. Maybe it’s not about going national or building a brand or becoming the next TED Talk success story. Maybe it’s about being deeply effective in a few lives at a time. Maybe it’s about turning down the funding that demands we water down the truth. Maybe it’s about building models that other people can copy without us being the center. We say we want impact—but what we really want is proof that the help is real, lasting, and not a photo shoot. Until we value that over the press release, the cycle will keep spinning, and the people will keep falling through the cracks.

Bay Area News Group. (2025, June 27). Nonprofit executive compensation in San Francisco: A Chronicle analysis. San Francisco Chronicle. https://www.sfchronicle.com/sf/article/homeless-nonprofit-executive-pay-20392408.php

CharityWatch. (2024). Nonprofit compensation packages of $1 million or more. CharityWatch. https://www.charitywatch.org/nonprofit-compensation-packages-of-1-million-or-more/

Independent Sector. (2024, June 24). Strengths and challenges in a time of division: Trust in nonprofits and philanthropy report. https://independentsector.org/wp-content/uploads/2024/06/IS-Trust-in-Nonprofits-and-Philanthropy-Report_6.25.2024.pdf

BoardEffect. (2023). Public trust in nonprofits: What boards need to know. https://www.boardeffect.com/blog/public-trust-in-nonprofits-what-boards-need-to-know/

Nonprofit Quarterly. (2024). How much do Americans trust nonprofits? It’s complicated. https://nonprofitquarterly.org/how-much-do-americans-trust-nonprofits-its-complicated/

Pew Research Center. (2025, May 8). Americans’ declining trust in each other and reasons behind it. https://www.pewresearch.org/2025/05/08/americans-trust-in-one-another/

University of Iowa Nonprofit Leadership Program. (2023, June). 2023 nonprofit hiring trends & salary guide [PDF]. https://nlp.uiowa.edu/sites/nlp.uiowa.edu/files/2023-06/2023%20Nonprofit%20Hiring%20Trends%20and%20SalaryGuide.pdf

 

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