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ASU Lodestar Center Blog

Research and recommendations for effective, day-to-day nonprofit practice from ASU faculty, staff, students, and the nonprofit and philanthropic community.


Wednesday, June 1, 2011

So, you're thinking about starting a nonprofit organization. You have a fantastic idea, but are you ready? Do you have everything you need before you begin? Is starting a nonprofit the right path for you?

Before you begin your nonprofit journey, you should ask yourself two very important questions. So, let's dive in, and see if you're ready!

1. "Why do I want to start a nonprofit organization rather than a for-profit organization?"

Both types of organization could be the right choice for you. After all, both are businesses, and both can help you provide the service you want to share. So, what is the difference? There are a number of similarities and differences. Here are few:

  • Nonprofit organizations are concerned primarily with social good; for-profits focus on profitability.
  • Nonprofit organizations must adhere to a rule of non-distribution whereby profits, or any excess at the end of the fiscal year, must be re-invested in the organization and its programs and may not be distributed to individuals; for-profits exist to distribute profit to owners and shareholders.
  • Nonprofit organizations comprise paid staff and volunteers; for-profits typically only have paid staff members.
  • Nonprofit organizations are governed by a board of directors; for-profits are governed by the owner(s) and, if a corporation, also a board of directors.
  • Nonprofit organizations are…
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Friday, May 27, 2011

Welcome to Research Friday! As part of a continuing weekly series, each Friday we invite a nonprofit expert from our academic faculty to highlight a research report or study and discuss how it can inform and improve day-to-day nonprofit practice. We welcome your comments and feedback.

If anyone ever once doubted the energy and organizing force of technology, rest assured they don't anymore. Social media, particularly, have proven to be powerful and exceedingly important, especially as we watch the uprisings in Tunisia and Egypt. I will long remember the images of so many people feverishly using their handhelds to discuss the death of Osama bin Laden in social media spaces. Within an hour (and with a huge helping hand from social media), thousands had mobilized and gathered all over the United States to celebrate, remember, and embrace. Clearly, participation is in, and passive observation is out.

Two weeks ago, I introduced readers to La Piana's "Convergence: How Five Trends Will Reshape the Social Sector." In the report, the authors describe five trends that will dramatically alter how the social sector functions. In my previous post, I reviewed the first trend in "Convergence," which is "Demographic Shifts Redefine Participation." This week, I'll discuss the second trend, entitled "Technological Advances Abound.

"…

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Tuesday, May 24, 2011

What does it mean to be a community organization? Nonprofit professionals use the word "community" a lot. We talk about serving the community, building community, and engaging community. But sometimes we forget that "the community" is not just an abstract demographic.

I'm lucky to live and work in downtown Chandler, a community with an active merchants' association and a city that is very interested in creating a sense of place. What I've learned from Chandler is that community is not a place — it's a practice. This community works because we know our neighbors, because we look out for each other, and because, sometimes, we care enough to argue with each other. I see community when the barber shop next door to my office holds packages that were delivered when we were out. I see community when business owners get up early to go to a meeting about parking restrictions. I see community when someone asks me for a recommendation, and I can say, "Sure, I know exactly who can help you. They're just down the street."

If you're looking for ways to find community, the best strategy I've seen is Asset Based Community Development (thanks Public Allies!), which uses the strengths that already exist in a community to effect positive change. You can click here to read more about the…

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Friday, May 20, 2011

Welcome to Research Friday! As part of a continuing weekly series, each Friday we invite a nonprofit expert from our academic faculty to highlight a research report or study and discuss how it can inform and improve day-to-day nonprofit practice. We welcome your comments and feedback.

"None of us exists independent of our relationships with others. In each of these relationships we are different, new in some way."

The relationship between a nonprofit Board Chair and the CEO is an incredibly important one. I have found no studies that dispute this. In fact, it ought to be a fun, exhilarating, rewarding experience for both members of this important leadership team. So, are we accomplishing this goal?

ASU is a research university that puts significant effort into true academic research. However, there are times when simple surveys produce very meaningful information — and can provide the basis for deeper research projects. And it is a simple (and small) survey upon which this blog is based.

The Organization for Nonprofit Executives (ONE) recently performed a survey of its members to help gather information for my presentation on the Board Chair/Chief Executive relationship. Thirty-two CEOs responded, and the results were extremely informative, leading to the greater question of how often this relationship is fun, exhilarating, and rewarding…

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Friday, May 13, 2011

Welcome to Research Friday! As part of a continuing weekly series, each Friday we invite a nonprofit expert from our academic faculty to highlight a research report or study and discuss how it can inform and improve day-to-day nonprofit practice. We welcome your comments and feedback.

Last year, I was introduced to a report called "Convergence: How Five Trends Will Reshape the Social Sector." Intrigued by the title, I decided to throw it in my "read while on an airplane" file. Once I finally packed my bags, boarded, and had a chance to read through the report, I immediately felt it was one of the most important monographs in the last two decades. Having been a member of the World Future Society for the past thirty five years, I have read a lot of literature focusing on trends, and I know it can be overwhelming to sift through all of the dialogue about what nonprofits should expect to see in the future. To alleviate some of this pressure, this week I will introduce you to one of the trends described in "Convergence," which was compiled by La Piana Consulting and commissioned by The James Irvine Foundation. The report was completed and published in November of 2009, and you can click here to download a copy.

Here's what we know: Many in nonprofit leadership positions have been hanging on by cutting more than they even thought possible. We in the academic community are…

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