Giving Compass' Take:

• Vu Le, writing for Nonprofit AF, describes why it can be beneficial for nonprofits to learn from for-profit organizations. 

• What are the main reasons why nonprofits reject the idea of operating like for-profit companies? 

• Read about one nonprofit that decided to switch models for greater impact. 

I keep encountering people who say that nonprofits should act more like for-profits. You probably do too. And of course, many of us bristle at the bizsplaining and the condescension. But maybe we SHOULD put our pride aside and consider the things we could learn from our money-minded counterparts.  Here are a few lessons from for-profits that are not just useful, they may be game-changing:

  • Think bigger, bolder; sometimes beyond reason! Look at MoviePass. It didn’t just want to just be a business; it wanted to completely “disrupt” the movie ticket industry. But we should admire this company’s perseverance and gumption.
  • Ask for WAY more money! Venture funds even for the start-up business ideas—some of which are brilliant, many are insipid—are in the millions.
  • Increase spending on overhead and not talk about it! Here’s a little-known fact: More for-profits have an “overhead” rate that average over 25%, with some industries like biotechnology and software at 50%!
  • Find creative ways to keep staff! Large companies like Amazon and Google want to keep their employees happy, so they provide on-site gyms, subsidized food, access to company cars, and probably a unicorn petting zoo!
  • Talk about ourselves a lot more! Let’s up our marketing! The public needs to know about the issues we’re working on, because there’s so much misconception out there.
  • Take more and bigger risks and accept failure as part of the process! One thing I do admire about for-profits is that they are willing to try stuff and accept failure. Look at Google Plus. And Google Glass. And Google Wave.
  • Be very confident, even about stuff we know nothing about! We tend to be extremely nice people who put up with crap instead of ruffling feathers. But maybe we need to ruffle more feathers.

Read the full article about nonprofits can learn from for-profits by Vu Le at Nonprofit AF