Why the “Scarcity Mindset” Is Breaking Nonprofits (with Danielle Dunbar)Why the “Scarcity Mindset” Is Breaking Nonprofits (with Danielle Dunbar)
APC Recovery Cafe
Host Nichole Dawsey talks with Danielle Dunbar about how underfunding and a scarcity mindset affect Alabama nonprofits, from volunteer-heavy structures to underpaid staff. Their conversation highlights the sector’s economic impact, the need for fair compensation, and the vital role nonprofits play in supporting recovery and community wellbeing.
35:06•3 Sept 2026
Why Scarcity Thinking Is Holding Back Alabama’s Nonprofits
Episode Overview
- Most Alabama nonprofits are very small, with 84% operating on under $1 million annually and many relying entirely on volunteers, which undermines long-term sustainability.
- The Alabama Association of Nonprofits provides community, training and support for isolated leaders, including programmes like the Nonprofit Executive Leadership Institute.
- Nonprofits are highly transparent, with public IRS 990s, active boards and significant oversight, yet still face scepticism and misplaced concerns about overhead.
- The sector is economically significant, generating $16.9 billion in revenue and employing over 82,000 people, while many staff remain underpaid and fall into the ALICE category.
- Danielle and Nichole argue that addressing major social issues, including substance use and mental health, requires moving away from scarcity thinking and paying nonprofit professionals fairly.
“Nonprofits are trying to solve society’s greatest problems… and there is no reason that we should live in poverty.”
What are the common struggles and victories in addiction recovery and community care when so much of the safety net is run on a shoestring? This conversation zooms in on how Alabama’s nonprofits are trying to hold everything together while facing a very real scarcity mindset.
Host Nichole Dawsey chats with Danielle Dunbar, Executive Director of the Alabama Association of Nonprofits, about what it actually looks like to run a mission-driven organisation in a state where “84% of Alabama’s nonprofits operate on a budget of less than $1 million” and “44%… reported no staff”.
That might sound efficient, but as Danielle gently points out, volunteer-only models “do not make a sustainable nonprofit” and certainly don’t guarantee long-term support for communities affected by substance use and mental health issues. You’ll hear why associations of nonprofits matter so much: they give isolated leaders a place to find training, solidarity and a bit of sanity.
Nichole shares her own scepticism about joining yet another membership group, and how she had to eat her words after experiencing programmes like the Nonprofit Executive Leadership Institute, where leaders bring real budgets, real problems and walk away with practical skills and new collaborators. The pair also tackle some persistent myths: that Alabama has “too many” nonprofits, that overhead is wasteful, and that nonprofit workers should accept low or no pay because they’re “doing good”.
Danielle highlights that the sector generates $16.9 billion in annual revenue and employs over 82,000 people, yet many staff still qualify as ALICE – needing the same support services they help provide. Running a charity on fumes might sound noble, but this episode gently asks: what would it look like if those solving society’s hardest problems were funded like they actually mattered?
If you care about recovery, community services and fair pay for people holding up the safety net, this one’s worth your coffee break.
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