What is the nonprofit sector’s contribution to society’s economics? This is a question often asked — but responding in true economic terms has been more difficult. Although the ‘double bottom line’ — profit and social value — have long been recognized, there are now new ways of looking at this question, encompassed in new terms: social, core, and monetary economies.

Dr. Laurie Mook, a professor at Arizona State University, defines the term social economy as:

A bridging concept for organizations that have social objectives central to their mission and their practice, and either have explicit economic objectives or generate some economic value through the services they provide and purchases they undertake. The term social economy puts up front the economic value of social organizations — that they produce and market services, employ people, may own valuable assets, and generate social value.1

Another perspective on the concept of social economy is that of Edgar Cahn, who suggests we have created two systems that are inter-related: the monetary economy and the core economy. He explains that the monetary economy is what we measure. It encompasses the income sources that drive our society: profit, government, philanthropy, earned income. The core economy, although supported by money, is not driven by it. It is “primarily powered by our minds, our…

It doesn’t matter if you’re a teenager, a parent, a business owner, aspiring entrepreneur, or a nonprofit organization: money can be difficult to come by these days. Even in times of economic prosperity, many nonprofit organizations have to fight in order to maintain a steady flow of funding.

While most nonprofits find funding from a variety of sources, one of the staples of charitable support comes in the form of grants. Consequently, nonprofit professionals should be well versed in crafting and compiling well-written grant proposals.

Whether you’re appealing to the government, private organizations, individual investors, or charitable donation services, every grant proposal should include the following:

• Cover letter 
• Executive summary 
• Information about your organization 
• Description of your goals 
• Proposed strategy for meeting those goals 
• Method for evaluating your success 
• A fully developed budget 
• Appendix or attachments.

The cover letter, executive summary, and organization information (1/2 to 1 page each)

Like a job application or emailed resume, cover letters are essential to introducing your organization. If your…

Welcome to Research Friday! As part of a continuing series, we invite a nonprofit scholar, student, or professional to highlight current research reports or studies and discuss how they can inform and improve day-to-day nonprofit practice.

It has often been said that organizational culture trumps strategy. An organization’s culture is composed of the values and behaviors practiced inside the organization, and it can be positive or negative. Culture is strongly influenced by relationships, as well as formal policies and informal practices. A healthy culture can inspire individuals to bond together and weather difficult challenges in pursuit of a common goal. A weak culture can leave individuals and the organization damaged and unsuccessful1.

Culture is not an “off the shelf” product, it must be cultivated. Achieving a strong culture requires intention and commitment, but the investment can pay off: a strong organizational culture can be a competitive advantage that strengthens the organization’s ability to achieve its mission and strategic goals. And, most of us find it much more pleasant to work in a positive work environment full of people who enjoy their work and their co-workers.

In 2009, The Bridgespan Group published a report titled "…

The observations presented here are drawn from six years of work in an indigenous Guatemala village of about 1,500 families called Chocolá. Our experiences may not apply to other rural communities. However, from our conferences and discussions with other NGOs and our interviews and work within other communities, we suspect our experiences are more common than they are unique.

The end of the Guatemalan Civil War resulted in a flood of non-governmental organization (NGO) programs spreading across the country in the hope of helping desperately poor people gain everything from their human rights, to better health care, food and nutrition, and training in governance. Most deserve to be applauded, but because the government and many NGOs find it quicker and less costly to pass out money, services, and equipment for “immediate impact” on critical issues, there has been a lack of emphasis on human resources. The absence of such training may leave communities fighting over the goods and services, rather than learning how to work together toward critical common goals. Many communities came to look to the government and NGOs for charity rather than for the human resource development that they need in order to gain control of their futures.

The observations presented in this blog post deal with some of the things we have learned while founding and then running a small community development NGO in an indigenous…

Welcome to Research Friday! As part of a continuing series, we invite a nonprofit scholar, student, or professional to highlight current research reports or studies and discuss how they can inform and improve day-to-day nonprofit practice.

For nearly 50 years, the Federal Poverty Limit (FPL) has been the standard measure used by governments and nonprofit organizations serving low income individuals and families to determine eligibility for anti-poverty programs. The FPL was based almost exclusively on the cost of food, assuming that food is one-third of a family’s budget. While it has been adjusted for inflation, it has never accurately reflected household costs, nor does it take into account childcare costs or other family variables. The FPL for a family of three is $19,090, regardless of whether those three people are adults, teen-agers or infants.

The Women’s Foundation of Southern Arizona (WFSA) commissioned a study to create a more comprehensive, useful measure of self-sufficiency. The recently released report, How Much is Enough in Your County? The Self-Sufficiency Standard for Arizona 2012, is a comprehensive, user-friendly tool that can be used by agencies and individuals to help Arizona’s families make real progress…