High Performance Takes Investment

Thursday, March 2, 2006

Changes in social-capital markets needed to boost nonprofit capacity.

Allen Grossman

(excerpt) Philanthropy’s influence on performance is far from neutral; it actually discourages management from pursuing performance as a primary objective. The conversation must begin with an analysis of how and why the philanthropic capital markets, for the most part, fail to encourage high performance in nonprofit organizations. Ironically, nonprofit executive directors consistently report that excellent performance of a nonprofit organization is rarely systematically rewarded with an increased flow of philanthropic capital.

In fact, an opposite situation prevails.

As programs were proven effective and the nonprofit organizations developed plans to grow, foundations — even those currently funding their organizations — were less receptive to their requests for funding.

Click here to read the full article.

Source: philanthropy journal (link opens in a new window)