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How Entrepreneurship Will Save Nonprofits

Organizations within the nonprofit sector are, for the most part, in a constant state of struggle. Between trying to keep funding coming in and keeping all the constituents happy, it can be easy to lose sight of what they are trying to get done. Some of this is just the inherent nature of nonprofits, but much can be remedied by taking a different approach to how nonprofits are run, and therefore perceived. Applying entrepreneurship skills and perspectives to nonprofit organizations will open the doors for a better public reputation and a better opportunity to make a real difference.

Nonprofits, by their very nature, are difficult to manage. Because they are legally owned by the public and exist for the benefit of the public, they are run by a group of usually unpaid individuals. The board is made up of people with a variety of motives for being there -- some have a passion for the cause, some enjoy the role of leadership, some are just trying to beef up their resumes. Between the board and the people who contribute their time and money to work in the organization, there is a sense that everyone has to agree before any move can be made.

While the consensus approach sounds like a blissful, charitable method of getting things done, anyone who has worked in that type of environment knows that progress can become stagnant, frustrations abound, and significant opportunities are missed. True leadership is difficult to establish, because the buck stops nowhere. Those with aggressive ideas or innovative plans are often lost in the din of the never-ending search for compromise. And that's just what happens inside the organization.

There is also a misguided (or at least incomplete) assumption that there should never be competition among nonprofit organizations. In order to establish themselves as separate and better than the for-profit world, there is no judgment as to what other nonprofits are doing right or wrong -- the simple fact that they are trying to do anything at all relieves them of responsibility for running things efficiently or effectively. Collaborating with other nonprofit's with similar missions is expected, and refusing to compromise standards for such partnerships is considered bad form. Even nonprofit startup "experts" often claim that no new nonprofit should be considered if an existing nonprofit is tackling the same or similar issue.

Bringing true entrepreneurial skills to the nonprofit sector might just be the wake-up call that draws more talent and more money, and results in a sector that has a better chance of reaching its stated goals. Nonprofits need to focus on building strong boards -- not a bunch of yes-men or posers looking to slide by. Board members must be willing to commit significant time and money, make hard decisions, and fight to implement the best strategies to solve the problems at hand, even if it ruffles some feathers.

Board members, staff, and volunteers need to buy in to an aggressive but positive culture, where innovation and fundamental business skills are tools for making the most difference, not pesky chores to be endured. The attitude toward competition should be reconsidered...it doesn't make any sense to risk your organization's reputation by backing another nonprofit that is barely approaching mediocrity.

Running a nonprofit doesn't have to be as frustrating and exasperating as it often seems to be. Simply implementing basic business concepts and an entrepreneurial perspective can alter the future of just about any nonprofit, refocusing the efforts on making a real impact, rather than mere survival.

About the Author

LaunchX.com is dedicated to training entrepreneurs to turn their good ideas into great companies. The LaunchX System provides step-by-step education in the mindset and skill set entrepreneurs need to succeed. Our program includes intensive seminar training, key business software, and specialized workbooks that teach you the fundamental skills you need to achieve your financial and worklife goals through entrepreneurship. Register today for our introductory course and see what LaunchX can do for you!