The NonProfit Equation

in #nonprofit7 years ago (edited)

nonprofitvalue.gif

What type of value are we even talking about?

Money in the bank (aka assets + equity)? Membership numbers? Cultural/social impact measured by qualitative and quantitative data? Have you stopped even caring about non-profits because these concepts are so boring?

Well if the answer is yes, then you probably shouldn't apply to TDC for a job, since they are the matchmaking consultants that help pair non-profit organizations with donor vision/values. These guys are the experts on what makes a non-profit tick.

But I'm more curious about the gestalt of nonprofits. Is there a basic formula or building block to form non-profits and evaluate their worth?

Or is it all IRS designation like the Scientologists can attest? Or is it really about the whims of the 1% donors and chasing after whatever fancy their legacy aligns with?

Let's try and create an equation that reflects the current milieu:
(Capitalization + Social impact) x (Board dynamics) = Value

Please add a comment with you suggestions on how to balance this equation.

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I do like the idea of a formula, but I'm not sure this is quite it.

If you provided an example or two I might get what you are saying.

How about this variation: (Resources + Programming) x Leadership = Impact.

Of course, "Leadership" is a mix all its own, including staff, board, volunteers, maybe even major funders, etc.

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