Rethinking Nonprofit Scale

Chris Anderson’s book, Infectious Generosity, has been haunting me. In part, it asks, why do so few nonprofits scale to serve millions while much of the corporate sector thrives at that level?

Anderson’s Audacious Project reflects his proposed solution: Philanthropy and nonprofits must “work with each other more creatively, more courageously, more collaboratively”.

An original believer in this idea was The Clinton Foundation. Through its Clinton Global Initiative (CGI), it showcased again last week the ways in which traditional nonprofits and foundations can maximize their value in an increasingly complex landscape. From affordable housing to (net) zero emissions, the convening is designed to elevate models with potential for scale.

Confirm What’s Working

It’s easy to assume that big nonprofits take off from the start. The reality is different. It takes research and iteration to scale a business model. I’ve seen too many organizations decide to serve the masses and charge ahead without the rigor needed to achieve their goals.

Nicole Hockley, co-founder of Sandy Hook Promise, launched her organization on the heels of a gripping national tragedy, the 2012 school shooting that killed her son, Dylan. She told the CGI audience that her early gun safety activism led her to advocacy, but the divisive political climate blocked her efforts. She was tempted to walk away.

Instead, she studied systems change, including movement builders such as Mothers Against Drunk Driving (MADD). She learned that successful organizations create the conditions for change before they succeed at policy.

As a teenager, Ms. Hockley herself heeded MADD’s calls to ensure her friends always had designated drivers. She has since taught her own children the importance of the concept, resulting in the kind of generational change that she learned was needed for gun safety. Her own work now combines education, legal work, and programming, “a holistic, inclusive, multi-generational solution to affect meaningful change”.

Sandy Hook Promise now boasts over 3500 mental health interventions, over 700 youth suicides averted, 16 credible school shootings prevented, and likely many more wins that don’t meet the organization’s strict criteria for measurement. Programming has reached over 26 million people. Perhaps as a result of these changed conditions, the organization has achieved its original goal, having written and passed three pieces of federal legislation.

Research is an underrated tool in our field. Ms. Hockley’s willingness to study the history of successful systems change made all the difference.

Ecosystems for Growth

Funding large-scale growth presents its own challenges. Lorraine Powell Jobs’ Emerson Collective is among the growing number of philanthropies committed to achieving scale that’s sustainable. The approach she described at CGI combines nonprofit grants with investments in for-profit companies.

In one example, Emerson Collective makes traditional grants to education organizations. It pairs those awards with investments in curriculum and technology firms that allow the grantees to benefit from an environment that eases the path to their goals. She describes the alignment of the two sectors as “rocket fuel”.

CGI’s agenda was a reminder that philanthropy alone doesn’t hold up at scale. Emerson Collective was one in an array of options for scalable partnership. Others include funder collaboratives, impact investments, governments, and emerging vehicles that pop up regularly. The funding sandbox is ripe for invention.

Philanthropy’s Role

Your foundation contacts can help you think through the preparation and risks involved with each kind of partnership. Since they are already financially and otherwise invested in your nonprofit’s success, there are many benefits to involving them in your growth plans. Among them:

• A seasoned thought partner on varied nonprofit investment structures

• Potential introductions to your funder’s network, including those beyond philanthropy

• A deepened relationship

• Buy-in around your organization’s plan that seeds the next potential grant

Major grants serve specific functions on the road to scale. They build highways that can propel a new phase of work. They enable bridges from one stage to the next. And, they can fund the research or development of your next-stage map.

Like capital campaigns, your organization’s big ideas can result in lead grants from foundations.

It’s frustrating that grant makers don’t power the full adventure. Most don’t have the assets to do so. But plenty will stay with you, willing to facilitate the growing array of partnership structures.

Is Scale Designed to Scale?

Large-scale growth is not for every organization. Some nonprofits thrive because of a particular personality, geography, or a preference for depth over breadth. All can bring meaningful changes.

I’m feeling optimistic about nonprofits’ ability to spread good solutions. Remote learning, social media, and AI all make the work more feasible. Still, it’s not easy. Our leaders, board members, and fund development professionals must stay current on a range of emerging funding mechanisms and the level of risk associated with each.

Speaking of risk, the world feels heavy these days. Our field could benefit from more gatherings that delve into the strategies that lead to the most widespread change. I came away from CGI uplifted by a model our field increasingly needs: philanthropies and nonprofits coming together to find and scale solutions. We need more of it.