Complex social issues are rarely solved by the individual success of a single organization. The nonprofit sector has the ability to achieve significant social change through collaboration across sectors. Cross-sector collaboration can be defined as partnerships between nonprofit, private, and government entities working together towards mutual goals to produce change (Simo & Bies, 2007). 

When the U.S. Department of Housing and Urban Development dropped the bombshell of defunding all but one nonprofit transitional housing provider for homeless families in Maricopa County, Arizona, the local nonprofit, private and government organizations began to scramble (Polletta, 2016). The community’s homeless housing and service providers were aware how the funding cuts would drastically eliminate transitional shelter beds within the family shelter portfolio. All sectors needed to consider what steps were essential to prevent the families in the defunded housing programs from becoming homeless again. This is an informal and episodic example where partnerships involving government, philanthropy communities and public businesses, collaborate to create a onetime task force to keep the families in need of housing, off of the streets. 

Far too often the nonprofit sector is stepping up to fill in the gaps in services because of local, state, and federal administrative failures (Simo & Bies, 2007). In order to meet complex social needs, the…

Corporate social responsibility (CSR) holds the power to make a significant difference for nonprofits and corporations around the world. The partnership between a corporation and nonprofit can be extremely complex and vary in participation, outcome and more, year by year. As corporate social responsibility becomes integrated into the framework of society, best practices need to be in place to successfully unify the collaboration between the public and private sectors. Nonprofit organizations and corporations need to work together and trust one another in order to make the largest impact possible for the populations they intend to serve. 

CSR should not be created solely to follow the trend and please stakeholders. These partnerships balance on a delicate scale between two sectors, which means that these cross-sector collaborations need to balance the needs of one another while accomplishing goals for the community. There is a significant need for improved social partnership which can withstand economic turmoil (Frynas, 2005, p. 581). CSR faces not only economic challenges, but also the challenge to be a successful partner with a nonprofit for long-term improvement (Lantos, 2001, p. 32). When economic giving for corporations may not be consistent over time, nonprofits need to find other ways to encourage corporations to support these pivotal partnerships (Lantos, 2001, p. 40). Examining current corporate social responsibility structures, determining…

The blurring lines between government, nonprofit and for-profit sectors have led to innovative vehicles to fund interventions that address society’s most intractable problems. Social impact bonds (SIBs), also known as pay for success programs, are not actually bonds. They are a way for the private sector to finance social interventions with an acute focus on achieving results. The Vera Institute (2015) offers this definition of social impact bonds: “In a social impact bond, private investors fund an intervention through an intermediary organization—and the government repays the funder only if the program achieves certain goals, which are specified at the outset of the initiative and assessed by an independent evaluator.” 

There are less than 40 known SIBs across the globe (Gustaffson-Wright et al, 2016). Despite this small sample size and lack of evidence for success, the concept has captivated politicians and Wall Street alike. In June 2016 a bipartisan bill passed the House of Representatives to allocate $300 million for state and local SIBs over ten years (Wallace, 2015). Several prominent corporate entities, like Goldman Sachs, have launched SIBs as part of their corporate social responsibility campaigns. These finance models rely upon nonprofits to deliver their programs, yet there is a dearth of guidance for nonprofit leaders to understand the opportunities – and risks – they represent.

In July 2015, two of the earliest SIBs in the US…

Governing boards are the backbone of many nonprofit organizations. When a board is effectively fulfilling its responsibilities, an organization will be more efficient and more successful. According to a study of 202 organizations in the Los Angeles and Phoenix areas, organizations that reported higher board effectiveness also reported higher perceived organizational success (Brown, 2005). 

Despite the importance of governing boards in the success of an organization, nonprofits consistently struggle to create an effective and engaged board. While most nonprofit directors report being satisfied with their board, in a survey done by researchers Larcker, Donatiello, Meehan & Tayan, (2015), nearly all nonprofit participants also reported some sort of serious governance-related problem within the previous calendar year that has negatively affected their organization. Shockingly, two-thirds of organizations surveyed are not confident in the board’s experience level and half are unhappy with the board’s engagement level. 

Researchers Chait, Holland and Taylor (1991) identified six characteristics of strong board leadership:

1. Contextual Dimension - The board understands the organization’s mission, goals and values. They make decisions based on their understanding of the organization.
2. Educational Dimension - The board takes care in ensuring all stakeholders understand the boards role and…

“Huff, puff, puff” says “The Little Engine That Could...”

Do you remember reading this classic children's storybook as a kid? This story is a life lesson about a little engine that was lacking confidence in its ability to successfully climb up a steep hill. After all, the risks facing the little engine were unmanageable, or were they? The story relates how with fortified determination and relentless effort, “The Little Engine That Could” faced the risks head-on and accomplished this feat. It's a lesson for nonprofits not to give up on their passionate and committed pursuits in fulfilling their mission. The lesson of this classic children's story can also carry the heading of  “The Little Board Committee That Could...” for the sake of nonprofit leaders and managers. How can nonprofit board committees manage risks?

Each little board committee, similar to little engines, will undertake complex matters of its nonprofit. Applicants who accept a position on a nonprofit's general board will have been selected their skills, expertise, knowledge, and a passion for the mission of the nonprofit.  For example, a retiree may apply for a board position with a nonprofit that trains dogs to be service dogs to disabled persons. The application of this retiree shows that he has accounting and audit experience, along with some insight on insurable risk. The nonprofit would most likely ask him to accept a position on the board with the intention of placing…