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Most U.S.-based non-profits take for granted that corporations are part of the giving pie. As in, yes, for-profits donate to non-profits. But what happens when the tables are turned and non-profits donate to for-profits?
This is what's happening at the Aspen Network of Development Entrepreneurs. Located in Washington, D.C., ANDE brings together 35 organization and calls itself "an international non-profit think tank." Members are interested in funding for-profit efforts in underdeveloped areas. Help of this nature has usually come in the area of micro lending, where institutions like Kiva, FINCA, and Friends of Women World Banking, among others.
Organizations like these are focused on resolving poverty by providing the financial means to poor people so that they can start a small business. Micro loans, like the name says, can be as low as $50 or even $100. This small amount of money allows an entrepreneur to buy an animal or raw materials. The goods generated by these be it eggs, milk or baskets would then be sold at the market for a profit.
The entrepreneur would use the profits to repeat the cycle, and thus start generating sufficient wealth to lift the family out of poverty.
What's different about ANDE is that they are focusing on social entrepreneurs rather than lifting individual families from poverty. Instead of helping an entrepreneur buy a goat or straw, ANDE will focus on funding larger projects. According to ANDE's site, their projects are likely to be under $2M. This is a far cry from a $50 micro loan. From my perspective, as a person who reaches out to foundations and corporations to fund the activities of non-profits, this new trend is something to pay attention to.
Social justice is now being fought in two very different fronts. In the developed world, non-profits are leading the charge, mostly funded by for-profit sources. Many foundations are the result of wealth acquired in the for-profit world.
In the underdeveloped world, for-profits are leading this charge. And their funds are coming from non-profits created specifically for this. This is tremendous food for thought when trying to understand what's the best way to change the world for the better.This is something for executive and fundraising directors to think about for the future.
Will the trends in each region remain the same? Or will they morph at some point? What are the steps that U.S. non-profits can take to stay ahead of the game and ensure that their fundraising strategies are in line with finding trends? The answers are not readily available at this point, and it will be a case of trial and error to figure them out. Yet thinking about it and trying to figure out how a non-profit can adapt is something that non-profit leaders should think of.
Learn more about this author, Nikki Rouge.
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