Yup nailed it. My theory is that language of the NP sector prevents clear thinking about the economics. "Nonprofit" is literally false. Charities are not charitable, they earn revenue to provide services. Donation shouldn't be considered a sacrifice any more so than a purchase.
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Thanks. Twitter will use this to make your timeline better. UndoUndo
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I think this post’s model describes charities, not the general nonprofit sector. Take for example parent teacher orgs in the US. These can be modeled as basically single circle feedback loops with some externalities.
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Not sure about parent-teacher orgs, but it's true that a nonprofit whose revenue is primarily from sales of a product/service has a more intact “product loop”. The investment loop is still broken IMO
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Except when, you know, things are more complex than simple models make them out to be. Also, counterpoint: American Health Care system.
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The American health care system is an excellent example of what happens when opportunities for profit are artificially constrained:https://twitter.com/jasoncrawford/status/1254650495525769221 …
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