Nonprofits have a lot to gain by partnering with for-profit businesses, but you may wonder how to get started.
The book, Forces for Good: The Six-Practices of High Impact Nonprofits, offers examples of organizations that go beyond transactional relationships with business to grow and serve more clients. One of the six practices, Make Markets Work, is the practice of nonprofits working with and through for-profit business, and taking advantage of markets, for greater social impact.
The three strategies for organizations to leverage business:
1. Changing business practices
Nonprofits have driven industry-wide changes. In the process of driving a business or an entire industry to be more socially conscious, the nonprofit and the business may benefit. Examples include changing labor practices, reducing pollution, and expanding into underserved markets. The case for change is the combination of good business opportunity and doing the right thing.
2. Partnering with business
These partnerships may start with the established practice of seeking sponsorships, donations, and volunteers from corporations. But, looking at shared visions and values, a nonprofit and a corporation, or growing entrepreneurial business, may find more common ground and deeper ways to partner for mutual benefit.
3. Running a business
Nonprofits can, and do, run businesses to make money in support of their work. From selling products to charging for consulting services, organizations have found ways to run an earned-income business that makes money while enhancing their work.
