What's Happening?
The nonprofit sector, which contributes significantly to the U.S. economy, is advocating for a rebranding to better reflect its economic and social contributions. The term 'nonprofit' is seen as limiting
and misrepresentative, suggesting scarcity rather than strength. This label affects funding flows, policy design, and public perception, often leading to underinvestment and a lack of innovation. The sector accounts for 5.2% of the U.S. GDP and employs 10% of the American workforce, yet it is often perceived as a secondary player in economic development. The initiative 'Five & Rising' aims to redefine the sector's image, emphasizing its role as a central engine of progress rather than a charitable endeavor.
Why It's Important?
Rebranding the nonprofit sector could lead to increased investment and recognition of its role in economic and social development. By shifting the narrative, the sector hopes to attract more sustainable funding and support from policymakers and the public. This change could enable nonprofits to scale their impact, innovate, and address societal challenges more effectively. The current perception of nonprofits as underfunded and dependent on charity limits their potential to contribute to economic growth and community resilience. A new identity could empower the sector to secure the resources needed to fulfill its mission and drive systemic change.
What's Next?
The 'Five & Rising' initiative is working with communities in Hawaii, Ohio, and the mid-Atlantic to pilot this narrative shift. The goal is to influence funders, policymakers, and the public to recognize the sector's true value. By adopting new language and funding models, the sector aims to secure unrestricted, risk-tolerant capital that supports innovation and long-term sustainability. This effort seeks to align the sector's identity with its economic contributions, fostering a more supportive environment for growth and impact.
Beyond the Headlines
The rebranding effort highlights the power of language in shaping public perception and policy. Similar shifts in language have transformed understanding and support in other areas, such as disability rights and mental health. By redefining the nonprofit sector, advocates hope to inspire a broader cultural shift that recognizes the sector's essential role in building resilient communities and economies. This change could also influence how other sectors perceive and interact with nonprofits, leading to more collaborative and impactful partnerships.
