Studies have shown that a critical issue in the social sector exists: the persistence of ineffective or harmful nonprofits. These organizations survive on funding despite failing to create measurable impact or, worse, causing harm. These organizations are given the name "Zombies". Zombies wander around the landscape, accomplishing little, but remaining animate as long as they can feed on human flesh. Replace “feed on human flesh” with “get funders to fund them” and the label is pretty much on point.
The real responsibility for these “zombies” lies not with the nonprofits themselves but with the funders who fail to demand accountability for impact.
The Problem: Zombie Nonprofits
Zombie nonprofits are organizations that achieve little or no meaningful results, yet continue to attract funding. They persist because:
Donors underestimate the vast differences in effectiveness between nonprofits.
Unlike in the commercial sector, poor performance in nonprofits rarely results in consequences for funders or executives.
The Role of Funders in Feeding Zombies
Unlike investors in the commercial sector, funders face minimal accountability for their decisions. Nonprofit beneficiaries have no power to reward or penalize funders, leaving funders free to support initiatives without clear evidence of success.
The result? Resources flow inefficiently, underperforming organizations remain funded, and the overall impact of philanthropy diminishes.
Defining and Measuring Impact
There is a need for a shared understanding of impact, defined as a material change in the world that wouldn’t have happened without the organization’s work. Impact is observable and measurable, focusing on concrete outcomes or real changes in people's lives.
To ensure accountability for impact, funders must ask five key questions about the organizations they support:
Mission:Â What specific impact is the organization trying to achieve?
Metrics:Â Are they measuring the right outcomes to capture this impact?
Change:Â Can they demonstrate that meaningful change occurred?
Attribution:Â Can they prove that the change resulted from their work, rather than external factors?
Cost:Â What was the cost of achieving this impact?
Transforming Philanthropy Through Accountability
Building a culture of accountability could transform philanthropy:
Money would flow to the most effective organizations.
Zombie nonprofits would either improve or fade away.
High-impact organizations would attract more funding and talent.
The social sector would gain greater public trust, inspiring more people to give.
Accountability for impact is not just a practical necessity—it is a moral obligation. By prioritizing measurable results and weeding out inefficiency, funders can ensure that their contributions drive lasting, meaningful change.
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