1. Don’t innovate for innovation’s sake. All efforts at innovation should be in pursuit of a compelling reason. Further, that compelling reason should align with a foundation’s mission and vision. While funding a new app may sound fun, if the new app doesn’t directly impact an audience or issue you’ve targeted, leave it to someone else.

2. Innovation doesn’t have to be a big deal. Effective innovations can be small but brilliant internal changes. For example, redefining a grant process with the grantee in mind instead of staff. It can also be as simple as an effort to shift perspective and look at your work from the outside in.

3. Innovation doesn’t happen in a vacuum. Funders who innovate almost always do so with at least one other partner, whether it be another funder, a private sector partner, a grantee or group of grantees, or, especially, representatives from the population(s) they wish to serve.

Read the source article at Putnam Consulting Group