This blog post is based on podcast episode. Listen now: Think Like an Entrepreneur: Revenue Growth & Sustainable Programs for Nonprofits

Nonprofits operate in a world of rapid change. Each year brings exponential shifts in technology, social behaviors, donor preferences, and how we exchange information. To keep up and, more importantly, be able to adapt, nonprofits need a new way of thinking. It’s time to take a page from an entrepreneur’s playbook.

This can be challenging for some nonprofit leaders who joined this sector to make an impact, not run a business. But that’s precisely the mindset needed: charities can’t deliver on their mission without earning revenue.

Let’s look at how nonprofits can use an entrepreneurial mindset to build a sustainable future. We’ll also share the characteristics of successful entrepreneurs and explore business practices that can help nonprofits better communicate their impact as they seek funding and recruit talent.

The Traits of an Entrepreneur

Every fundraiser or nonprofit leader has said or heard these six words: “We’ve always done it this way.” Few sentences will stifle your growth more. If you want to not just survive but thrive, banish them from your vocabulary.

An entrepreneurial mindset can benefit all organizations. Let’s examine some common traits among successful business leaders.

Entrepreneurs Seek Opportunity

Successful entrepreneurs consistently have their eyes on the market and other people’s needs. They look outward and are comfortable with the chaos of starting something new, finding funders and team members, and building a product or service. They also have a growth mindset and are often driven by a simple question: Is there a better way to do this?

Entrepreneurs Are Risk Mitigators

People often think of entrepreneurs as gamblers, willing to risk everything on what may seem like a long shot. In reality, the best entrepreneurs can analyze a situation, the risks, and probabilities and tip the odds in their favor.

Entrepreneurs Turn Passion into Resilience

Most nonprofit leaders are passionate about the causes they serve. But when times get tough, they must be able to turn that passion into resilience. The ability to bounce back from setbacks, learn from mistakes, and continue to move forward is critical.

This could mean shifting your role to meet your organization’s needs. For instance, if your nonprofit needs a fundraiser or evangelist, you might need to think like a salesperson. Some organizations may need an operations whiz, while others need more of a servant leader.

Entrepreneurs Are Visionaries

The ability to see the full scope of your nonprofit’s needs is essential. However, you must also understand your skill set. Entrepreneurs can create and champion an organization’s vision, but they must then surround themselves with people who can bring it to life. The best entrepreneurs aren’t taskmasters; they know how to build exceptional teams.

Entrepreneurs Are Resourceful

Every nonprofit leader must be resourceful to survive. However, that resourcefulness is often focused on getting the next grant, partner, or donation. Entrepreneurs employ nontraditional resourcefulness, meaning they consistently consider how they might do things differently but sustainably long-term.

Business Best Practices for Your Nonprofit

Nonprofits already borrow strategies from for-profit businesses, such as omni-channel marketing and subscribed giving options. The next step is to incorporate business best practices for your operations. Let’s explore some examples.

• Submit grant proposals that read like a business plan. Communicate the value of your social impact. For instance, don’t say you’re creating a job development program. Consider the expectations and long-term effects — how you’ll attract people to your program and how you’ll sustain it.
• Define your case for impact. This differs from your case for support. It’s not why someone should support you; it’s the result of your impact on those you serve. If your job development program promises a job, ensure employers help you create the program. Determine how you can show proof of concept and scale from there.
• Invest in your organization. Many nonprofits want to see an immediate return on their expenditures, but building a sustainable organization is a long game. Technology, research, and talent investments keep you up to date with market needs and will deliver returns well into the future.  
• Embrace profitability. By definition, nonprofit organizations aren’t expected to turn a profit. But you need revenue to fund investments and programs. Don’t be afraid to prioritize revenue growth and explore new income streams.
• Hold your people accountable. Set clear goals and offer consistent coaching to build a team of top talent. Define realistic but challenging growth metrics that will move your organization forward and give fundraisers what they need to succeed.

More Growth = More Impact

Nonprofit leaders can invest in and develop their organizations while also delivering their mission. In fact, the more you prioritize growth and sustainability, the more societal impact you can have.

At the end of the day, the difference between a for-profit and a nonprofit is their tax status. Both are businesses working to serve a purpose. By thinking like an entrepreneur and bringing business best practices into your organization, you’ll develop the agility to adapt to ever-changing market needs and donor behaviors. This will enable you to be a strong force for good in your community for years to come.

Our Allegiance Group + Pursuant team has years of for-profit and nonprofit expertise. We’d love to help you uncover ways to boost your revenue and build more sustainable programs. Connect with us today.