Is Scarcity Thinking Holding Us Back? Lessons From ALICE and the Case for Abundance in the Social Sector

Nonprofits are tired.

Teams are stretched thin. Programs are expected to deliver more impact without more support. Over time, the sector has learned to treat scarcity as normal and sometimes even virtuous.

But scarcity is not a leadership strategy. It is a condition we have adapted to.

Scarcity thinking did not originate in the nonprofit sector. It is the result of long-standing systems that prioritize short-term solutions, underinvest in people, and reward urgency over sustainability. When those pressures go unnamed, they shape how organizations plan, fund, and define success.

At the same time, more families are living in the ALICE reality. ALICE stands for Asset Limited, Income Constrained, Employed. These are individuals and families who work, contribute, and still cannot afford the basics. As nonprofits respond to growing need, many are being asked to stretch even further without changing the underlying systems.

This moment calls for more than resilience. It calls for a shift in how we think about capacity, partnership, and leadership.

The Scarcity Trap

Scarcity thinking shows up in familiar ways:

Do more with less.
We cannot afford to invest in staff.
We have to prove we deserve every dollar.
Let’s compete for the same limited funding.

These beliefs are understandable. They are shaped by real constraints. But over time, they lead to burnout, fragmented efforts, and programs designed to survive rather than thrive.

The good news is that many nonprofits are already pushing back.

Across the sector, organizations are rethinking how success is measured and how work gets done. Reporting is becoming more realistic. Peer learning is replacing competition. Communities are helping define what impact actually looks like. These shifts are not about lowering expectations. They are about aligning strategy with reality and values.

Abundance does not mean ignoring limitations. It means choosing focus, collaboration, and intention over constant urgency.

What ALICE Teaches Us About Abundance

ALICE households include cashiers, caregivers, educators, and service workers. They are essential to our communities and often one unexpected expense away from crisis.

Too often, the narrative suggests these families need to try harder or manage better. In reality, the systems around them are not working. When programs are designed from a scarcity mindset, they tend to be rigid and transactional. When people are viewed through a deficit lens, dignity is lost.

Shifting the narrative changes everything.

When ALICE families are seen as resilient and resourceful, programs move from gatekeeping to capacity building. Supports become more flexible. Messaging shifts from pity to partnership. This is abundance in practice.

What Abundance Looks Like Inside Organizations

Abundance shows up in everyday decisions.

It looks like funding collaboration rather than competition and recognizing that impact happens across ecosystems, not in isolation.

It looks like sharing power, inviting nonprofits into decision-making, and trusting those closest to the work to define success.

Most importantly, it looks like investing in people.

Nonprofit professionals cannot be expected to run on mission alone. Passion does not prevent burnout. Sustainable impact requires fair wages, healthy boundaries, and cultures that allow people to rest, learn, and grow. When organizations take care of their teams, they protect their missions.

Abundance Is a Leadership Choice

Abundance is not about having unlimited resources. It is about using what we have with clarity and intention.

Abundance opens space for partnership, learning, and long-term thinking. It asks different questions: What already exists that we can build on? Who needs to be at the table? How do we support people to lead, not just deliver?

Choosing abundance is not easy. But in a sector built on hope, dignity, and collective effort, it is necessary.