Putting the Profit in Nonprofit: Increasing Cash in Social Enterprises in Order to Make Them Sustainable
In the last several years, there has been a push for not-for-profit developers to adopt the business management practices of successful for-profit corporate entities. High performing for-profit corporations know how to generate cash and grow businesses, and employ many practices which nonprofits should replicate, especially during this age of austerity. The resulting trend has raised awareness around practices like how to make equity equivalent investments, implement change management, and interpret and present financial data in a concise and transparent manner.
In light of the current trend, it is appropriate to reflect on how nonprofits differ from their for-profit counterparts, especially as it pertains to organizational growth. By appreciating these differences, we can better evaluate which for-profit practices are most practical for nonprofit organizations to adopt, and what policies can facilitate the process.