Nonprofits, United Way, Social Goals, Efficiency: A Review of "Begging for Change," by Robert Egger

In Begging for Change, Robert Egger shares his views on nonprofit organizations, concluding that our philanthropic efforts don't seem to help. Egger explores problems in the nonprofit sector, and ultimately concludes that most nonprofits "need to be merged or eliminated" (164) to improve philanthropic efforts.

One of Egger's complaints is that nonprofits put too much emphasis on short-term survival, which diverts attention away from achieving their missions (20-21). Many nonprofits lack long-term financial plans, and instead devote too much of their time and resources working to secure grants. To make matters worse, many of these grants come with strings attached, diverting agency resources away from the mission. Egger recommends that nonprofits strive toward long-term financial independence, which will allow them to focus on their missions. Egger also promotes umbrella organizations, like the United Way, that guarantee long-term funding.

Egger also criticizes nonprofits for their poor planning. He cites a nonprofit that wasted money, ultimately spending $12 million to house 1,100 people (50). If a private business wastes money due to poor planning, its leaders will be fired. Furthermore, the invisible hand of capitalism will put this business into bankruptcy if it continues to neglect proper planning. However, nonprofits escape scrutiny because of their good intentions. According to Egger, nonprofits can "hide behind a noble mission" (50).

Surprisingly, Egger claims, "The biggest problem in the [nonprofit] sector isn't a lack of funding or resources or lack of volunteers, it's wrong impressions and stereotypes" (63). He claims these stereotypes cause us to assign blame instead of fixing problems. Egger successfully identifies stereotyping as a problem, but does not substantiate stereotyping as "the biggest problem." Perhaps Egger still resents the United Way interviewers who told him he wasn't the "CEO type" (64-65).
On the donor side, Egger commends us for donating so much to causes, but criticizes us for giving "too much randomly and not enough strategically" (71). Egger cites the New Mexico wildfires, where firefighters said they became thirsty fighting fires, and later were given truckloads of bottled water (70). While this donation was very noble, it was unnecessary and excessive. Like these water bottles, too many of our donations are random and not as helpful as they could be. In fact, a one-time donation may end up hurting a cause if the organization has to later find a replacement for these funds (or cut its programs). Egger suggests we give our donations to one organization instead of spreading our donations too thin between multiple organizations. He also suggests donating to the United Way to ensure long-term viability.

Egger also criticizes volunteers and donors for forgetting "whom they are serving" (81). Many donors give what they would want for themselves, but forget about the recipient's desires (84-86). Egger speaks of "nutritional imperialists" who hoped to feed children hummus, carrot sticks, and peanut butter (86). Do kids want to eat hummus or do donors want kids to eat hummus? Unfortunately, these donors impose their values on recipients and forget whom they are serving. Egger suggests giving people what they want or will use, not what donors want people to want or use.

Eggers criticizes nonprofits for lacking ambition. He believes nonprofits go after simple goals, like feeding as many people as possible. However, the agency only corrects the symptom with this goal, and never makes any strides toward ending hunger. A better solution might give people the skills and tools to one day feed themselves. Eggers wants nonprofits to think outside of the proverbial box, and to find solutions to the problems, not just the symptoms.

Finally, Egger criticizes nonprofits for falling into routines and lacking ambition. He says that CEO's can become smug in their cushy, overpaid jobs. Even incompetent CEO's can keep their jobs by hiding behind their noble missions. Eggers suggests that nonprofit CEO's should have to prove why they deserve to keep their jobs, as they would in the private sector (150). This will keep CEO's from falling into complacent routines. They will be forced to change with the times, innovate, and improve efforts toward their missions.

Overall, Egger believes that our philanthropic efforts don't make a difference because they put too much emphasis on fund raising (and not enough emphasis on their missions), lack effective planning, follow wrong impressions and stereotypes, forget the real needs of those they are serving, lack ambition, and fall into complacent routines. Nonprofits organizations also struggle because individual donors give money randomly, without strategy.

Ultimately, Egger concludes that we don't need more money and resources to accomplish our social goals; we need more efficiency (46). Egger even believes that inefficient nonprofits should lose their funding and be eliminated. He also wants to see nonprofits coordinate and collaborate. Egger stresses quality of services over quantity of services.

Overall, this is a fantastic book. Egger uses a wonderful writing voice, as if he were in the room talking to you. His personal anecdotes help illustrate his points and make the book much more interesting.

Eggers ideas, for the most part, are extremely innovative. The first half of the book transmits a great deal of knowledge that Egger has learned through his experiences. He also gains credibility because of his practical experience with D.C. Central Kitchen and the D.C. United Way. We cannot doubt the intentions of a man who leaves the private sector and abandons (or at least seriously delays) his dream of owning a profitable nightclub. Egger gave up personal wealth in order to improve society. Most impressively, he took a shockingly low salary when he became Executive Director of the United Way in Washington D.C., when his predecessor became an extremely wealthy man while holding the position. Egger builds major credibility, and he uses this credibility to pass along strong, helpful ideas.

However, the book weakens in the second half, and almost becomes preachy. Egger's ideas become less concrete and more abstract. He seems to ramble and repeat himself. Egger becomes infatuated with CEO's, and spends too much time criticizing them while indirectly complimenting himself. He goes overboard in his discussion of CEO salaries, wandering from his initial focus.

Nonetheless, Egger's relatively weak finish does not take away from the fantastic first half. Egger returns to his original, concrete focus in the epilogue. This epilogue helps the book finish strongly, making up for the weak second half of the book. After reading the epilogue, I felt inspired. Overall, I believe others will feel inspired by this book, and hopefully will set out to fix the problems that stifle our charitable efforts.