Post-Gazette Editorial – 2/1/07

This page was last updated on February 4, 2007.

Genteel sexism: Boys will be boys and nonprofit chiefs; Editorial; Pittsburgh Post-Gazette; February 1, 2007.

Rather do a full piece-by-piece critique, I’ll address only one point.

The editorial states, “It is almost more shocking that the compensation gap is widening at local nonprofits, which, being in the business of altruism, might otherwise be assumed to be more enlightened than for-profit enterprises.”

In case you missed it, this paragraph revealed once again the PG’s bias against capitalism (read: freedom).

First, the PG appears to believe nonprofit businesses are “in the business of altruism,” as opposed to regular businesses that I assume the PG believes must be in the business of greed.

Let’s remember most of nonprofits pay no property or income taxes that could contribute to the community. On the other hand, regular businesses do. Likewise while investments in for-profit businesses fund many retirement funds [pensions, IRAs, 401(k)s, et cetera], nonprofits can’t because they generate no profit. Let’s also remember many leaders of nonprofits make a tidy income. For example, Pitt’s chancellor makes $442,500 for 2006-2007. For an “altruistic” mission, that’s quite a haul.

The above wasn’t intended to bash nonprofits. Though some profit and nonprofit businesses are in the same industry and may compete against each other, they tend to have different missions. Neither for-profit nor nonprofit businesses are morally superior to the other.

Second, the contention that a nonprofit business “might … be assumed to be more enlightened than for-profit enterprises” is exactly the opposite of what I would expect. Though there are exceptions, for-profit businesses tend to be in a more competitive environment than nonprofits. After all, if a regular business isn’t profitable, it dies. This means I would expect regular businesses to place a greater emphasis on hiring the best person for the job regardless of race, religion, sex, et cetera. Since there are no profit expectations for a nonprofit, I believe it would be easier for a nonprofit to hire for reasons not directly linked to success. Don’t get me wrong; I’m not saying nonprofits don’t try to hire the best person. I’m only saying the more competitive world of the for-profit business probably makes it more likely a for-profit business is looking for the best performer regardless of race, sex, et cetera.