What’s Wrong with Nonprofits?

Feb 4, 2026

Greg Berman, nonprofit leader and reformer who co-founded the Center for Justice Innovation, offers a diagnosis of today’s nonprofit sector. He discusses how NGOs extend government services and why public trust has fallen. Short conversations cover critiques from left and right, fundraising and professionalization, philanthropy’s incentives, and practical advice on sticking to measurable mission work.

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INSIGHT

Nonprofits As Essential State Capacity

Nonprofits extend state capacity by delivering services the government relies on, especially in cities like New York.
This creates a symbiotic relationship where about a third of nonprofit funding can come from government sources.

INSIGHT

Erosion Of Public Trust

Public trust in nonprofits has eroded since about 2015–2016 and now hovers just above 50% in polls.
Declining volunteerism and fewer individual donors compound this credibility problem.

INSIGHT

Bipartisan Backlash Against NGOs

Nonprofit critiques come from both left and right: left criticizes leadership diversity, wages, and misconduct; right focuses on ideological conformity and 'wokeness.'
Both sides also attack nonprofits as elite, self-interested institutions.

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Today’s guest is Greg Berman, and we talk about nonprofits — Non-Governmental Organizations, or NGOs. Greg’s got a new book out called The Nonprofit Crisis: Leadership Through the Culture Wars, which I enjoyed. I asked him to explain his diagnosis of the nonprofit sector. What’s happened to nonprofits this century? What’s happened to how people perceive nonprofits? And are “NGOs the bad guys”? As critics from both ends of the political spectrum will argue.

Greg was part of the founding team responsible for creating the Center for Justice Innovation, serving as Director from 2002 to 2020, and helping to guide it from a start-up to an org with an annual budget of more than $80 million. Alongside that, he:

* Has written multiple books, mostly on reducing mass incarceration, including Trial and Error in Criminal Justice Reform and Good Courts: The Case for Problem-Solving Justice.

* Has been at the center of left-liberal attempts to do criminal justice reform, especially in New York City, over the past two decades.

* Was on the Board of Correction for Mayor Michael Bloomberg, and the public safety transition team for Mayor Bill de Blasio and Manhattan District Attorney Cy Vance.

* Is the co-editor of a publication called Vital City, which I enjoy — it’s one part New York journalism, one part policy journal.

* Is the Distinguished Fellow of Practice at the Harry Frank Guggenheim Foundation, investigating various topics related to violence.

Thanks to Charles Lehman, Sean Sullivan, Oliver Traldi, Park MacDougald, Rafa Mangual, Ari Schulman, and many others for their contributions to my thinking on this piece.

We discuss:

* Why nonprofits matter to government service delivery

* Critiques of nonprofits from the left, the right, and both sides

* How the Center for Justice Innovation reduced incarceration, and why funding that work got harder

* What nonprofits should do to regain public trust

The full transcript for this conversation is at www.statecraft.pub.

This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit www.statecraft.pub