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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, February 10, 2021

According to 2019 research by Meredith Kavanagh, nonprofit leaders believe that some of the top investment priorities for their organizations that year were more advanced technology (e.g. CRM system, online fundraising platform, etc.) and a stronger focus on online fundraising. However, according to Yale Insights, when it comes to nonprofits, only 11% view their organizations’ approaches to digital as highly effective.

According to Mark Hrywna, mobility is among the top drivers and benefits of the cloud. Mobility is huge, enabling a mobile workforce with nonprofits having people in the field, and collecting data and interacting with the data and apps anywhere. That is going to be one of the greatest benefits to nonprofits that they do not yet realize: the ability to mobilize using the cloud.

Clearly there is a gap between what nonprofit organizations identify as priorities and how they rate their effectiveness with technology. Technology can be used for a variety of tasks across organizations to help them increase their impact in the sector and the communities that they serve. The Chronicle of Philanthropy states, “The nonprofit sector has not yet figured out how to navigate these…

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Wednesday, January 27, 2021

For decades, the perception of executive pay at nonprofit organizations has been the image of a grossly underpaid executive director OR a scandalously overpaid CEO. But as the social sector matures, becomes more professional and finds meaningful ways to measure success, executive compensation is developing a new image. With the influence of engaged boards and thoughtful hiring and retention practices, nonprofits are poised to offer more competitive and attractive compensation packages than ever before.

Historically, executives at America’s nonprofits have felt pressure to take a nonprofit discount in pay in exchange for the psychic benefit of charity work. But is virtue truly its own reward? Does it compensate for lower compensation? As the line between sectors blurs, nonprofits compete more and more in the marketplace for top talent. Unlike the for-profit sector with their bottom-line focus on profits, nonprofits have a double bottom line that requires them to view all decisions (including hiring and executive compensation) against both a financial bottom line and a socially responsible bottom line. Limited resources, social pressures, and board biases may contribute to lower compensation. Even the IRS plays a role in determining what nonprofits can pay their executives.

With charity watchdog groups scrutinizing every dollar spent and pressure to keep salaries low and funding to programming high, competitively compensating nonprofit…

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Tuesday, December 29, 2020

Illustration of a tree and ecosystem inside the bulb of a lightbulb

While it might seem contrary to the type of organizations nonprofits are, they must earn some money to fund the good work they hope will be sustainable community solutions. Typically, that money comes from donations, grants, or foundations tied to limited projects or programs, which limits the longevity the funding actually has and limits how long the organization can sustain a solution. Social enterprises, however, could help solve this problem.

Social enterprises are when money-making endeavors aim to have a social impact. This can be an existing business opting to start working toward a social mission, a business partner with a nonprofit on a social issue, or a nonprofit deciding to create a money-making venture of their own to fund a community solution.

Risks and rewards

With all things come risks and rewards. Social enterprises are not cheap and financial investments of this size, particularly in the nonprofit world, can make executives and leaders hesitate. These endeavors are also a huge investment of time. With nonprofit staffs often stretched thin, it can be hard to see where you might begin to find the time to start one. However, if you can answer all of these risks, there is a huge payoff to be had.

Nonprofits can be pushed by social enterprise to keep moving forward at a more rapid pace. Berzin and Cameron warn nonprofits that they must keep moving in this way or risk getting “run over” in the…

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Thursday, November 19, 2020

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Collectively, churches comprise the largest segment of the nonprofit sector in America. They also represent the largest accumulation of assets and human capital. Moreover, the Church is diverse: racially, geographically, vocationally, socio-economically. Their potential to impact significantly our social challenges is extraordinary.

Collective Impact is a methodology designed to facilitate cross-sector collaborations in order to move the needle on important issues. Kania and Kramer developed the methodology to correct the practice of isolated intervention, choosing instead diverse partnerships aligned around shared goals. Collective Impact is a helpful framework to organize churches to affect change in their cities.

God loves cities. In fact, He encourages His followers to seek the welfare of the places in which they live (Jeremiah 29:7). He promises as cities flourish, His people dwelling within will also flourish. The Bible is replete with God’s commands to proclaim good news, heal the sick, comfort the downtrodden, feed the hungry, and to care for orphans and widows. The gospel is a verbal message of salvation demonstrated through acts of God’s love. Obeying these commands pursues the common good of a city and its people.

Unfortunately, the division between churches often mirror the broken system they are trying to…

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Tuesday, November 10, 2020

Illustration of a caduceus in front of a city

The disparities highlighted by the COVID-19 health crisis in health access, education equity, underinvested neighborhoods, and lack of or underemployment, all play a role in the disproportionate impact the crisis will continue to have on Latino and underserved communities nationwide. Nonprofit organizations meant to support these communities have suffered a similar fate in the federal response while foundations try to fill the void. 

Nonprofits will see a rise in need stemming from people on the margins of the disaster recovery response. Nonprofits must engage in long-term strategies that will prepare them for the work that will remain long after federal, state, and private responses have receded. This crisis will only serve to exacerbate the effects of slight growth in traditional funding sources for nonprofits, already trying to do the best with what they have.

Social enterprise opportunity

For the most part social enterprise has been a response explored by larger nonprofits – think Goodwill, Habitat for Humanity. For these organizations, the balance of “money and mission” offered by social enterprise approaches was a promise fulfilled. Social enterprise is any earned income business or strategy undertaken by a nonprofit to generate revenue in support of its charitable mission. These early adopters understood the need to explore opportunities outside of conventional funding sources to achieve financing needed to…

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ASU Lodestar Center Blog