The traditional charity model is broken. The warning signs have been there for years – overstretched teams, ever-tightening funding pots, donors demanding “impact” without understanding the infrastructure behind it, and a never-ending cycle of short-term grants and high-stakes applications. Especially for micro and small non-profits, the cracks are now impossible to ignore.
Something is definitely shifting in the world of community action and social good. For decades, the charity model has been held up as the gold standard for doing good. But now, more and more people are asking the uncomfortable question: is it still fit for purpose?
For many micro, small and medium charities and community organisations, the signs are hard to ignore. Traditional funding streams are drying up. Grant applications are becoming increasingly competitive and bureaucratic. Teams are shrinking, while expectations continue to rise. Meanwhile, organisations are bending themselves out of shape to fit short-term funding criteria that often dilute or distort their core mission.
The truth is that the traditional charity model, built on dependency, precarious funding, and perpetual ‘gratitude’, is showing serious cracks.
But what if this isn’t the end – but a beginning?
It’s no longer just a question of how we do good. It’s a question of survival.
Many organisations find themselves stuck: clinging to a model that no longer fits today’s economic or social realities. You work harder each year just to stay afloat. You bend your mission to suit funding trends. You drown in admin, compliance, and the exhausting performance of “being a good charity” – but still face questions about your worth.
Here’s the truth no one wants to say aloud: the charity model is dying.
But here’s the opportunity: what rises in its place could be stronger, more resilient, and more authentic to your values.
The Rise of Socially Trading Organisations (STOs)
Socially Trading Organisations (STOs) are challenging the rules of engagement. These are mission-driven organisations that blend purpose and income generation – not for profit, but not for begging either. They sell services or products, create jobs, and keep their social values at the core. In short, they trade, earn income, and retain a clear social purpose. They are organisations that operate with the mindset of a business but the heart of a community movement. They’re not waiting for permission to innovate. They’re not defined by how well they comply with outdated systems. They are bold, creative, and resilient.
STOs are not a passing trend. They are a response to systemic failure – a way to regain control, reduce dependency, and build long-term impact through self-determined action. They deliver services people want and need, they reinvest in their communities, and they shape their own futures.
This isn’t about abandoning purpose. It’s about finding new ways to protect and sustain it.
Why This Matters Now
There’s a growing recognition that clinging to outdated structures isn’t helping anyone. Many charities are trapped by red tape, burnt out by bureaucracy, and exhausted from chasing funding that barely covers core costs. The pandemic, rising inflation, and cost-of-living crisis have only magnified the fragility of this model.
What’s needed now is a shift in thinking – away from charity as “helping the needy” and toward community-driven enterprises that are rooted in fairness, dignity, and sustainability.
It won’t be easy. It requires risk, courage, and a willingness to let go of what no longer serves. But for those who make the leap, the rewards can be transformative.
The question is no longer can we afford to change?
It’s can we afford not to?