What We Can Learn from Each Other
Reacting to a Chronicle of Philanthropy piece on the Nonprofit Finance Fund’s Nonprofit Business Analysis program, Tactical Philanthropy blogger Sean Stannard-Stockton speaks cogently on the disconnect that often occurs in discussions over financial structure and mission. Stannard-Stockton’s post includes a note that all professional people, regardless of their sector, would do well to digest:
In the article, the head of one of the nonprofits that hired NFF says, “You can’t run an arts organization by the numbers.” That’s right, you can’t run for-profit businesses “by the numbers” either. Running a great business is not simply about cutting costs and increasing revenue, it is about delivering a good or service that connects with customers in an important way or solves a problem. In other words, running a great for-profit is more about “mission” than it is about crunching the numbers. Is Apple or Google or Starbucks great because they’re the best number crunchers? No. It is because they’ve provided a unique customer experience, solved problems and made their customers happy. They also understand their business model very well, but they don’t run their businesses “by the numbers.”
Follow your mission well, and the money will follow, whether you’re seeking income from sales or gifts from donors. How often do we forget that lesson? | 501(c)
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POSTED IN: Business affairs, For-profit, Mission
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