When I relocated from Portland to San Diego, I was between HR roles and searching for my next position. A new REI store was preparing to open, and I was hired onto the team that would launch it. My plan was simple: work the sales floor until I landed my next HR role, then move on.
That isn’t what happened. For the next eight years, I worked full-time as a human resources leader and part-time at REI, helping co-op members choose the right kayak, snowboard, skis, or bike for their outdoor adventures. I couldn’t walk away, and one moment from the very beginning helps explain why.
The night before opening day, then-CEO Sally Jewell came down from Seattle to meet our team. She spoke about the co-op, its members, and its purpose. Then she said something that has stayed with me ever since: “There is no mission without margin.”
Where the Idea Comes From
The phrase has deep roots in the nonprofit world. “No margin, no mission” is widely credited to Sister Irene Kraus, who led the Daughters of Charity National Health System and later became the first woman to chair the American Hospital Association. I don’t remember whether Sally referenced her that night, but the idea traveled well: from a Catholic health system, to an outdoor co-op, to a brand-new store in San Diego, and now to every nonprofit leader reading this article.
REI is a member-owned co-op, not a nonprofit. Still, that evening helped me understand something every mission-driven organization needs to hear. The mission is big and important, and we must be able to sustain it.
What Margin Really Means
In plain terms, margin is what remains after you’ve covered the full cost of doing the work. For a nonprofit, it means generating a surplus: revenue left over once programs, salaries, rent, technology, and operations are paid for. That surplus is the margin.
A surplus isn’t profit pocketed by owners. It’s fuel reinvested in the mission and a cushion that protects it. Margin is how an organization replaces a failing roof without cutting a program, weathers the year a major grant isn’t renewed, and says yes to growing community needs instead of building a waitlist.
Why We Avoid the Conversation
Many mission-driven leaders feel uneasy talking about money. It can seem at odds with the purpose that drew them to the work. I understand that instinct. But REI taught me that the fundamentals of business don’t compete with the mission. They serve it. Efficient practices, diverse revenue streams, and a clear strategic plan determine how far, and how long, a mission can reach.
A Strong Foundation for Lasting Impact
Consider a familiar pattern. A nonprofit launches a program the community loves. Demand grows, and the team says yes to more clients, more sites, more services. No one wants to turn people away. But funding doesn’t keep pace. Staff stretch thinner, reserves drain, and leaders eventually face the painful choice of scaling back the very program that defined them.
That isn’t a failure of heart. It’s a gap in planning, and it’s preventable. Organizations that talk about margin early, build reserves deliberately, and grow at a pace their finances can sustain are the ones able to keep their promises today and in the future.
The People Behind the Margin
As an HR leader, I see the human side of this clearly. When margin disappears, people usually feel it first: frozen wages, unfilled positions, deferred training, and dedicated employees carrying more than any one person should. Burnout and turnover follow, taking relationships and knowledge with them. When margin is healthy, organizations can pay fairly, invest in development, and keep the experienced people who make the mission real every day.
Sally’s words that night weren’t about putting profit ahead of purpose. They were about protecting purpose. Margin isn’t something to whisper about. It’s how the mission shows up in the world, and how it reaches more of the people it was meant to serve.
