The "Lean = Good" Fallacy

Why the Generosity Treadmill Is Still Running

Public expectations have backed charities into a corner. We’ve romanticized under-resourcing as virtue and treated professionalization like a red flag. According to Imagine Canada’s 2023 Sector Monitor, 63% of small charities are under serious financial strain. Many are one illness or one declined grant away from shutting down. And yet, donors still expect miracles on minimal budgets.

The Treadmill Isn’t Emotional—It’s Systemic

Donors often want lower admin costs. Charities face higher demands and often they too play into the lower overhead = better falacy. The result?

• Custom applications for each funder
• Personalized reports for every donor
• New impact frameworks with each campaign
  

Charities are working harder just to stay in place. It’s no surprise that nearly half of charity leaders report burnout. Among small organizations, it’s closer to 62%.

Imagine If These Were Businesses

We don’t flinch when Amazon or Salesforce spend 35% of revenue back into marketing. We call that smart. But charities? We shame them for similar investments. Why? Because we’ve equated overhead with waste—and sacrifice with integrity. As if the only “good” nonprofit is one that barely survives.

A Smarter, More Honest Framework

Let’s stop obsessing over ratios and start asking better questions:

• Is this spending aligned with the mission?
• Is the organization’s impact growing with its resources?
• Does it have the backbone to sustain real change?
  

Fundraising isn’t a necessary evil—it’s how we build the future.

Can We Build a Better System?

Yes. But it starts with honesty. About costs. About strategy. About the kind of sector we actually want. Imagine if we slowed the treadmill. If generosity wasn’t a sprint to survive—but a thoughtful, empowering choice about addressing the systemic issues and building a better benevolence.

This future is possible. But only if we’re willing to challenge the assumptions keeping us stuck.

– Jeff

Co-Founder, WellFunded

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