Do Nonprofits Need to Think Outside the Box?

          By Joseph Amodeo

          Social Enterprise Professional and Policy Researcher   via Huffington Post Impact

Do nonprofits need to think outside the box? Is there even a box anymore? Through my own experience, the answer to both of these questions is yes.Nonprofits are prone to innovation stagnation, especially as they become accustomed to a particular way of doing things. This slowing of the nonprofit "gears" encompasses both how organizations are managed as well as how they are responding to particular social problems.

As a development professional, I can attest to the fact that many nonprofits are fundraising for and communicating their mission in much the same way they were decades ago even as funding partners are transitioning from the traditional approaches of grantmaking to a model that embraces social investment. In order for nonprofits to standout among their peer organizations, so as to capture the attention of social investors (e.g. foundations, venture philanthropists, etc.), they will need to change how they fundraise and communicate their impact. This shift will require that nonprofits begin to present their programs and services in a way that potential investors are able to understand not only the immediate impact of their investment, but also the potential returns in the future. In much the same way that for-profit companies issue dividends, nonprofits will have to ascertain a similar way of helping a social investor realize the return of his/her commitment to the organization. Of course, this return will still be altruistic in nature, but should instill a sense of satisfaction and realized impact.

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