Stanford Social Innovation Review

In the for-profit world, the term “investment” has clear meaning and investors have sophisticated techniques for spotting and growing the most promising companies. Yet foundations and other nonprofit donors have not developed similar clarity or approaches. As a result, the nonprofit sector’s greatest gems often languish well below their full potential. By better translating for-profit concepts, donors can learn how to scout out and grow the best nonprofits. Likewise, certain nonprofits can take a page from business’s playbook and learn how to attract cash for expansion.

One foundation’s approach to maximum impact.

Grassroot Soccer uses the world’s most popular sport to educate kids in sub-Saharan Africa about HIV and its prevention.

How did Room to Read create more than 5,000 libraries in less than eight years? The media have largely focused on founder John Wood as the catalytic figure in the organization’s success story. Of equal importance, however, is Room to Read’s solid and replicable operational choices. 

For-profit businesses can efficiently and quickly raise large amounts of money to fund growth and innovation by tapping equity capital—money that people invest in a company in return for ownership and a share of profits. The nonprofit world has no corollary, making it difficult, costly, and time-consuming to raise money. In this article the author explores ways that nonprofits and funders can create their own version of equity capital, and, just as important, develop an equity approach to doing business.

In the early, heady days of the venture philanthropy movement, its proponents touted it as revolutionary, while critics said it was just old wine in new bottles. The experiences of the Center for Venture Philanthropy show that the truth lies somewhere in between: Venture philanthropy is no miracle cure, yet it can be particularly good at building strong organizations, knitting together new networks, and shrinking the power gap between funders and grantees.

From the Girl Scouts, to Partners In Health, to the city of Providence, R.I., great organizations have one thing in common: great managers. These managers, in turn, share four simple management principles that they use to guide organizations from mere mediocrity to stand-out stardom.

Would-be EDs cite inadequate mentoring, low pay, and poor lifestyle as career obstacles.

The most trusted employees cash in on lax internal controls to fleece nonprofits.

When the Salk polio vaccine proved to be effective in 1955, the National Foundation for Infantile Paralysis had to choose whether to close up shop or to pursue a new agenda. The foundation first broadened its mission, but lost donations, volunteers, and public support. After honing its mission to birth defects, however, it recovered. Here’s how the organization that eventually became the March of Dimes planned – and survived – its transitions.

Management wisdom says that nonprofits must be large and in charge to do the most good. But some of the world’s most successful organizations instead stay small, sharing their load with like-minded, long-term partners. The success of these networked nonprofits suggests that organizations should focus less on growing themselves and more on cultivating their networks.

Social enterprises combine the best of the nonprofit and for-profit worlds, but that very innovation has made it difficult for them to raise money. Philanthropists are reluctant to give grants to profit-making organizations, and commercial investors are wary of investing in organizations that are driven by a social mission. The authors explore the social enterprise capital market and offer short- and long-term solutions to this funding gap.

SSIR Managing Editor Eric Nee spoke with Escuela Nueva’s president Vicky Colbert about her efforts to change the way children are educated.

In virtually every for-profit industry, success hinges on producing more goods or services at a lower cost without compromising quality. But increasing productivity can work in the nonprofit world, too, as an examination of three healthy nonprofits shows.