Stanford Social Innovation Review

A vicious cycle is leaving nonprofits so hungry for decent infrastructure that they can barely function as organizations—let alone serve their beneficiaries. The cycle starts with funders’ unrealistic expectations about how much running a nonprofit costs, and results in nonprofits’ misrepresenting their costs while skimping on vital systems—acts that feed funders’ skewed beliefs. To break the nonprofit starvation cycle, funders must take the lead. —By Ann Goggins Gregory & Don Howard

Manchester Bidwell Corporation replicates by adapting general strategies to local cultures. —By Suzie Boss

The prevailing governance model is fundamentally adversarial, pitting board members in a never-ending struggle with executives. This model may ensure that the legal requirements of oversight and compliance are met, but it does little to advance the organization’s goals. The authors propose a new and more effective framework, one where board members and executives work together to advance the organization’s mission. —By Raymond Fisman, Rakesh Khurana, & Edward Martenson

Unethical behavior remains a persistent problem in nonprofits and for-profits alike. To help organizations solve that problem, the authors examine the factors that influence moral conduct, the ethical issues that arise specifically in charitable organizations, and the best ways to promote ethical behavior within organizations. —By Deborah L. Rhode & Amanda K. Packel

From pink ribbons to Product Red, cause marketing adroitly serves two masters, earning profits for corporations while raising funds for charities. Yet the short-term benefits of cause marketing—also known as consumption philanthropy—belie its long-term costs. These hidden costs include individualizing solutions to collective problems; replacing virtuous action with mindless buying; and hiding how markets create many social problems in the first place. Consumption philanthropy is therefore unsuited to create real social change. —By Angela M. Eikenberry

Some of the brightest ideas for social change grow in the spaces between organizations and sectors. Yet few organizations have systems that make collaboration happen. To foster innovation, organizations need to develop places where they can come together and work creatively—that is, platforms for collaboration. In this article, a management expert identifies three kinds of collaboration platforms—exploration, experimentation, and execution—and then outlines
what organizations can do to put these platforms to work for them.

The importance of finding dedicated project managers, and the money to support them.

Over the past few years, Washington, D.C., has witnessed two explosive nonprofit scandals. Both scandals invited embarrassing publicity and congressional scrutiny. Both exposed the governance flaws of experienced and well-intentioned board members. And both could have been avoided. —By Pete Smith

Our economy is in bad shape and will only get worse. So what can fundraisers do to minimize the impact of this difficult period on our organizations, and at the same time maximize income? —By Mal Warwick

For-profit executives use business models—such as “low-cost provider” or “the razor and the razor blade”—as a shorthand way to describe and understand the way companies are built and sustained. Nonprofit executives, to their detriment, are not as explicit about their funding models and have not had an equivalent lexicon—until now. —By William Landes Foster, Peter Kim, & Barbara Christiansen