Frederick County’s nonprofits generate more than $1 billion in economic impact every year. They employ thousands, strengthen neighborhoods and support everything from health care to education to civic life. It’s a powerhouse sector—yet one that we often view through the wrong lens.
Too often, we reward charities for their modesty instead of their ambition. Social entrepreneur Dan Pallotta calls this a dangerous mindset. We cheer when nonprofits spend less, not when they achieve more. And here in Frederick, that thinking may be limiting the very organizations that fuel so much of our community’s success.
Frederick’s Nonprofit Engine
Nearly 1,600 nonprofits call Frederick County home. Together, they account for 8% of the workforce, pay out $340 million in wages, and keep our local economy thriving. Their reach is vast—health and human services (59%), education (16%), civic life (9%), and more.
But look closer: two-thirds operate on budgets under $25,000 a year. Just 2% cross the $5 million threshold. Imagine trying to run a business with no funds for marketing, no room for risk and no time to plan for growth—that’s the reality most nonprofit leaders face.
The Mindset Problem
Charity watchdogs measure success by “lean” budgets, urging nonprofits to pour 65–75% into programs and keep overhead minimal. But this standard punishes organizations for investing in people, infrastructure or outreach.
If we told a startup it couldn’t hire talent or advertise, it would collapse before it grew. Yet nonprofits are forced to do just that.
Why This Matters for Frederick
This isn’t just a matter of goodwill—it’s smart economics. Research shows 87% of employees stay loyal to socially engaged employers and 76% of consumers will switch brands to support a cause. Businesses that give generously often weather downturns better than those that don’t.
If Frederick businesses partnered more boldly with nonprofits, the payoff could be both financial and social—stronger companies, stronger community.
A Call for a New Mindset
What if we stopped treating “overhead” as waste and called it what it is: infrastructure?
What if we gave nonprofits the freedom to take risks, scale up and fail forward—just as we do for entrepreneurs?
The future could look like this: competitive salaries that attract top talent, campaigns bold enough to reach new audiences and leaders planning years ahead instead of scrambling month to month.
What You Can Do
- Give smarter. Ask about outcomes and goals, not just overhead.
- Invest in capacity. Fund the unglamorous essentials like staff, technology and marketing.
- Volunteer expertise. Nonprofits need strategists, marketers and accountants as much as event helpers.
- Champion boldly. Celebrate organizations that take risks and impact, even if their budgets aren’t razor-thin.
Frederick’s billion-dollar nonprofit sector is already an engine of impact. But with a mindset shift—from scarcity to ambition—it could be even more. If we want our nonprofits to thrive and our community along with them, it’s time to rethink what supporting them really means.