Ep. 579: Non-Profits and Cities, AI and Job Displacement, Debunking the Overhead Myth
Christina
Hello, everyone, I’m Christina Darnell, the managing editor of MinistryWatch. Welcome to the MinistryWatch podcast.
In today’s extra episode, I talk with Warren Smith about some news items that are slightly (even significantly) outside of our normal charity and philanthropy “beat.”
So, Warren, what’s up first?
Warren
Do non-profits contribute to the decline of cities?
Aaron Renn, whose ideas I usually find nourishing, asked that question and came up with what I think is the wrong answer.
Christina
He said they did.
Warren
That’s right, but I think this is one of the rare times his analysis is flawed.
He has an analysis of leadership development in Indianapolis and has (tentatively) concluded that the rise of non-profits could be contributing to the decline of American cities.
I recommend his analysis to you, even though I find it flawed in a number of ways. He is right to note that the number of non-profits has grown dramatically in the past few decades.
Christina
There are about 2 million non-profits in the country today, a huge increase in just the past decade.
Warren
That’s right. And it’s also true that many cities have non-profit leadership and “economic development” programs.
But the analysis fails to note that most American cities have seen a remarkable revitalization over that period. The real crisis in America today is not the decline of cities, but the decline of small towns and the hollowing out of rural America as young people move into the cities that Renn says are in decline. Non-profits are not the problem. Renn, a clear thinker, has nonetheless in this case confused correlation with causation. One of the reasons for the growth of non-profits is their effectiveness in providing solutions to the problems Renn rightly identifies.
Christina
We’ve got links to Renn’s study and other resources that might help with this issue in today’s show notes.
Warren, you took a look at artificial intelligence this week. What did you learn?
Warren
A new study by Tufts University has identified which cities will be most affected by the growth of artificial intelligence. Not surprisingly, San Jose, Calif., home of Silicon Valley, will see the greatest impact. Washington, D.C., comes in at Number 2.
Christina
You can see the complete study in the show notes. But what does this have to do with ministries, and stewardship?
Warren
Fundraising executives and program managers – which includes a lot of non-profit jobs — are among the jobs to be most affected by the growth of AI.
And, by the way, the job expected to be impacted the most, Christina, is journalism. So buckle up!
Christina
The Washington Post had a provocative article about growth in the Catholic Church, but you found the article to be wanting.
Warren
I did.
The Washington Post headline proclaimed it knew “Why Catholicism is drawing in Gen Z men.” The answer: “Young men in their 20s and 30s are increasingly drawn to the Catholic Church as they seek truth, beauty and, yes, girlfriends.”
The only problem: It is not true. At least not true generally. Ryan Burge, who tracks religion statistics, says that the Catholic Church is in decline. Further, weekly church attendance among practicing Catholics is in freefall. According to Burge, “There’s absolutely an uptick in new converts in the last few years. [But] even after these increases, the overall numbers are still significantly down from 2000.” To add insult to injury, more Catholics are becoming evangelicals than vice versa. The Washington Post article has seen a few anecdotes and confused them with data.
Christina
But the article noted that one Catholic diocese in Ohio had grown by 2000 people. That sounds like growth.
Warren
It does, but Burge noted that a single protestant megachurch in Ohio had grown by 2000 people. And not just one, but two churches. So it’s important to put that growth in context.
Christina
While we’re fact checking and myth busting this week, you have another myth to deconstruct.
Warren
It’s what I call the “Overhead Myth.” That’s the idea that non-profits should have as little overhead as possible.
Christina
What’s wrong with trying to reduce overhead expenses?
Warren
Nothing…within reason.
An interesting article at Candid (Guidestar) asserts that “every business pays for overhead, like salaries, rent, and technology, but this doesn’t solely determine whether they are seen as successful.” The article asks, “So why are nonprofits judged differently?” It goes on to say, “The overhead myth states that organizations that spend less on overhead are more effective. But this thinking puts nonprofits at a disadvantage.” The article has a point. The bigger issue is not reducing overhead to zero, but being accountable, transparent, and efficient. I recommend all donors and ministry leaders read this article, which you can find in today’s show notes.
Christina
Finally, Warren, I know a lot of our listeners have been following the Artemis moon mission. There’s a faith angle to this story.
Warren
My friend Bobby Ross, Jr., has written a great article about Victor Glover, the pilot of the Artemis II ship currently coming home from the moon. Glover is active in Southeast Church of Christ in the Houston suburb of Friendswood, Texas. His elder flew to Florida to witness the liftoff of the Artemis mission. To read a 2021 interview with Glover in which he discusses his faith, and taking communion in space, again, go to day’s show notes.
Christina
Any final notes before we go?
Warren
I have some travel coming up in the next couple of months, and I would love to see you. I will be in Los Angeles in April. I’ll be speaking at the annual convention of the Evangelical Press Association in Nashville in June. I’ll also be in Dallas and Knoxville in May. I will be speaking at Summit Ministries in Manitou Springs in June, so I’ll be doing reader lunches in Denver and Colorado Springs during that trip. Let me know if you would like to join us. My email is [email protected].
Christina
And since we were talking about the Overhead Myth, it’s probably worth mentioning again that you have written about our rating system, and that article might be helpful for those wanting to dig deeper into this issue.
Warren
That’s right. I’ve written about the pros and cons of rating systems, and explained why – despite the cons – we think rating ministries is important. But how you do it matters. I’ll have a link to an article explaining our rating system in today’s show notes.
Christina
The producer for today’s program is Jeff McIntosh. I’m Christina Darnell, along with Warren Smith. You’ve been listening to the MinistryWatch podcast.
Until next time, may God bless you.
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