This study aims to understand the internal environment of non-profits, more specifically large international non-governmental organisations (INGOs), that contribute to internal institutional crises and challenges ranging from sexual and racial abuse to boardroom tensions. The authors conducted semi-structured interviews with senior leaders from large INGOs and 5 funders. The main finding was that large INGOs have poor internal institutional health and internal, institutional dysfunction is prevalent within the non-profit sector, among INGOs. The study identifies six contributing factors and provides recommendations to mitigate the factors that contribute to challenging internal environment.