Giving Compass' Take:

• Alliance for Strong Families and Communities researched the financial data of a variety of nonprofit organizations offers insight as to how nonprofit organizations and the social sector can start to embrace more innovative thinking. 

• How can nonprofits change their core models so that innovation becomes easier? Can they learn from other entities such as social entrepreneurs and Benefit corporations? 

• Read about five ways that nonprofits can tap into the impact investing markets. 

A report commissioned by our organization, Alliance for Strong Families and Communities, looked at the financial data of more than 200,000 nonprofits in the United States and found that community-based, human-service organizations are in financial peril.  We came to understand that if we’re serious about moving from lip service to action on innovation, we need to rethink six management mantras:

Management Mantra #1: Our CEO [and/or any other members of the C-suite] is the visionary and responsible for innovation. Innovator’s Mantra: All of our staff are visionaries and responsible for innovation.

Management Mantra #2: We just need to get our brightest staff in the room to solve this problem. Innovator’s Mantra: If you want the most successful solution, keep your end user (or key stakeholder) at the center of everything you do.

Management Mantra #3: We need to define the problem we are trying to solve. Innovator’s Mantra: We need to define the positive goal we seek to achieve.

Management Mantra #4: We need a really big idea! Go big or go home! Innovator’s Mantra: We need a sound solution to a routine problem! Go small for big results!

Management Mantra #5: Let’s start innovating, but we are looking for practical solutions. Because we’re a nonprofit, we can’t afford to entertain ideas that are too “out of the box.” Innovator’s Mantra: Let’s start exploring the weird, wild, and wrong ways to do things. There’s plenty of time to get practical.

Management Mantra #6: We don’t have time to waste; let’s figure out the best idea and start executing. Innovator’s Mantra: We don’t have time to waste; let’s figure out the fastest way to test our ideas and fail fast, fail cheap.

Read the full article about innovation in nonprofits by Polina Makievsky at Stanford Social Innovation Review