The Bad Business of Planned Parenthood

Despite profits of $85 million in 2008, Planned Parenthood is facing serious financial difficulties. According to a recent Harvard Business School case study, Planned Parenthood Federation of America (PPFA) is structured as a 501(c)(3) non-profit organization with multiple affiliates, each of which is also a 501(c)(3) non-profit. The national entity lobbies on national policy, sets affiliation standards, and leases its “Planned Parenthood” brand to affiliates, each of which has its own independent board and management structure, and so enjoys independence in its day-to-day operations. Internally, Planned Parenthood’s difficulties stem from the uneven strength of its affiliates, and President Cecile Richards is worried. According to the Harvard case, her organization faces “tough economic times, a hostile political environment, and limited ability to raise philanthropic dollars in a resource constrained area of the country.”