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ASU Lodestar Center Blog

Unlock your nonprofit's innovation, viability and impact with social capital


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What if I told you that unlocking an untapped resource for your nonprofit that costs little to nothing can transform your mission and amplify your impact? This blog will look into an often-overlooked superpower that can advance your organization in ways you never thought possible- the secret power of social capital. Deep diving into the foundation of social capital, its dimensions, and its hierarchical framework. Revealing how social capital can fuel innovation, cultivate digital and in-person connectivity, and how leadership can unleash this superpower.

The foundation of social capital 

Social capital has many definitions, but a universal definition for nonprofit social capital is establishing trust, norms, and networks that can advance organizational mission impact. Social capital comprises three fundamental elements: relationships between individuals and groups, trust within those relationships, and beneficial resources. Nonprofits are a perfect match for social capital since they are driven by the cycle of reciprocity: support and collaboration between the organization and the community. 

Hierarchical framework

Bixler & Springer (2018) illustrate the hierarchical framework of healthy nonprofits as a pyramid with three layers, each dependent on the other. It starts with a strong base as a foundation of organizational capacity. The next layer is social capital, which becomes the power to hold the top of the pyramid, sector effectiveness- the ultimate goal of a nonprofit mission. 

Breaking down social capital

Social capital can be divided into four dimensions: structural, cognitive, bonding, and bridging.

  1. Structural Social Capital: The relationships and network connections that help individuals or organizations obtain resources that support mission impact. 
  2. Cognitive Social Capital: Shared beliefs, values, or goals within a group that make productive teamwork. 
  3. Bonding Social Capital: Strong connections within a tight-knit group based on similarities in background, experiences, or values. 
  4. Bridging Social Capital: Connections between diverse groups that bring in wide-ranging resources and skills to accomplish mutual goals.

Social capital as an innovation catalyst

Social Capital can be a catalyst for innovation in nonprofit organizations. Nonprofits with a shared mission and participation in collective learning will lead to amplified innovation, and this powerful combination will build solid social capital ties. Fundamentally, bridging social capital (weak ties to a diverse network) enhances innovation while bonding social capital (strong ties to a tight-knit group) slows or prevents the progress of innovation. It is best to have diverse viewpoints and a range of knowledge to drive innovation.

Leveraging the digital edge

Recognizing an individual's social capital can provide valuable insights for nonprofit leaders to enhance engagement across digital platforms and in-person networks. Importantly, individuals with high social capital online or offline are more likely to engage in philanthropic activities, including donating and volunteering. When comparing offline and online philanthropy networks, offline donors have more robust offline social capital, whereas online donors have more online social capital. However, the relationship between social capital and volunteerism differs: people participating in online volunteering have fewer offline social connections. In contrast, those who volunteer offline often have more robust online social networks—underscoring the importance of combining digital networking platforms and in-personal social opportunities with philanthropic initiatives. 

Driving impact

Now, it’s time to unlock your nonprofit’s innovation, viability, and impact and prioritize social capital as an asset that can have a multiplier effect on your organizational goals. Harnessing its power by including it in strategic planning can open up new opportunities for collaboration, advocacy, and resources. Learning about and utilizing social capital can amplify your mission. Diversifying a nonprofit’s network in the digital world and in-person settings can help achieve your organization’s philanthropic goals. Developing meaningful relationships can enhance the health of the nonprofit sector and its communities.

Beverly J. Burke is a 2024 graduate of the  Masters of Nonprofit Leadership and Management at Arizona State University and a Nu Lambda Mu Honor Society member. She also holds a Bachelor of Arts in Community and Human Services focusing on Disability Studies from Empire State University, NY, and an Associate of Science in Early Childhood Education from Suffolk County Community College, NY. Based in Holbrook (Long Island), NY, Beverly is a proud mom of three successful adult children. She is a one-of-a-kind dynamic professional with 15 years of expertise in the nonprofit sector. Her expertise encompasses education advocacy, parent advocacy, grassroots, and self-advocacy, and she is highly skilled at navigating complex systems. Currently, she is developing a private business dedicated to empowering individuals through innovative, community-centered solutions. She embodies the core principles of nonprofit leadership and is recognized for her approachability, commitment, and willingness to share knowledge. Beverly is guided by a mission to inspire change through connection and innovation. 

Image: Global innovation via Arizona State University


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Beverly Burke

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