Nonprofit Business Analysis

1463 Words6 Pages
With an economy driven by capitalism and bottom lines, it seems inevitable that nonprofits must tap into these business dealings if they are to survive. In respect to this, chapter three of Leslie R. Crutchfield’s and Heather McLeod Grant’s book, Forces for Good: The Six Practices of High-Impact Nonprofits, titled “Make Markets Work,” delves into the strategies used by nonprofits who have harnessed business tactics in an effort to increase their social impact. Using three overall strategies- change business practices; partner with business; and run a business- the chapter describes how non-profits have achieved such successful leverage in the business world. Opening with the Environmental Defense Fund’s (EDF) transformative decision to…show more content…
No longer satisfied to depend on limited perceptions of aid, or to view businesses as their adversaries, nonprofits have finally discovered methods to work within the economy and support companies to do good deeds as they prosper. Until recently, nonprofits had been paradoxically viewed within our economic sectors of society. Traditionally, these organizations are expected to make an extraordinary impact on their social purpose yet, they are frowned upon when they choose to amplify their shoestring budget to fulfill this charge. It is a “double bottom line,” this requirement for nonprofits to balance between monetary return and social impact (Worth, 2013, p.7). Nonprofits can effectively utilize the strategies discussed by “Making Markets Work” to bring awareness and financial stability to its social purpose. However, these organizations should be mindful of how much of their time and resources are consumed by business as to not lose perspective on their ultimate social goal. These are the fears and risks that every nonprofit grapples with, the need to provide while still working towards the organization’s mission. In the past fear was the driving factor deterring nonprofits to distance themselves from business methods. Many nonprofits fear that their engagement in business tactics may lead them astray from their intended missions or may cause others in the nonprofit sector negatively view…show more content…
Working with Neiman Marcus will allow the nonprofit to increase its capacity in providing relief and jobs to women in Dallas who have “a history of incarceration, abusive relationships, sex trafficking or poverty” (Fancher & Repko 2016). The Akola Project’s social enterprise nature is that of a hybrid nonprofit because it is able to balance market and mission (Worth, 2013). This union of empowerment opportunity and product investment truly demonstrates Akola’s “balancing commitment to [their] mission with responsiveness to the market” (Worth, 2013 p. 35). The Akola Project’s partnership demonstrates the transformative power of nonprofits using business methods in today’s
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