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04/Apr/2016

I am intrigued by Andrew Stern’s article in the latest Stanford Social Innovation Review titled, No Exit The Case for Nonprofit Holding Companies. It dovetails with our upcoming event in Philadelphia, Streamlining Social Good on April 28th. Stern’s premise is that nonprofits often hit a wall after 5-10 years when fundraising becomes more difficult and leadership transitions abound. In the for-profit sector there is an efficient system for harnessing the value in such an organization – companies are acquired by larger companies and derive benefits from the additional resources these strategic mergers offer. They don’t have to get to scale on their own, as is presumed in the nonprofit sector: Grow, Change or Die! Nonprofits don’t have a similar way to pivot and still retain their value.


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