We are told almost continuously that associations and nonprofits must be more like businesses to thrive, and perhaps even to survive. Associations Now ran an article just yesterday talking about how difficult it is to get nonprofits to be more like for profits. Early on in that article, there was a link to a Google search that showed how prevalent this theme is. I believe there are two compelling and inherent ways that associations and nonprofits are not, and should never be, like their for profit counterparts.
Associations and Nonprofits Keep Score Differently than For Profit Counterparts
For Profit Corporations exist to create wealth, whether for owners, partners, or shareholders. By definition, that is why they exist. If they don’t do that, they don’t stay in business very long. While associations and nonprofits should strive to use best practice business methods, metrics, and management, and always aim for a healthy balance sheet, they are mission and values based organizations.
No one (not stockholders, owners, partners, donors, or even members) owns associations or nonprofits. They are “owned” by their mission, and by the values embedded that define the means and methods they will use to achieve that mission. There is something about the DNA of associations and nonprofits that makes them “look like” for profit counterparts, but genetically, they are different because of this fact. To forget that, or worse, simply ignore it, in the interest of being “businesslike” is to abandon a unique and specific identity and purpose.
Associations and Nonprofits Have Volunteer Human Capital as a Major Asset
The article in Associations Now referenced above basically bemoans the fact that Boards get in the way of nonprofits being more businesslike, extending the decision cycle, etc., and perhaps making things a bit messier while doing it. I’m all for Boards being well equipped, oriented, understanding their role, and allowing qualified staff to do their jobs, etc., but again, there is something in the DNA of associations and nonprofits that is different than for profits.
For profits simply do not have volunteers, who are consistently willing to give their time, energy, and money, on behalf of the purpose of the organization, with no expectation of direct monetary/wealth return. For associations and nonprofits, volunteer time, energy, commitment, and funds are again, in the DNA. Something unique happens in organizations when volunteers participate.
Those who are willing to give time, energy, and money to a cause, to make something different, to be change agents, end up being changed themselves. The changers also become the changed. That is about identity, purpose, values, commitments, etc., that make the world more human, and I haven’t yet bought into the notion that corporations are human, my friend. I’ve never yet met a corporation that I wanted as a true friend and intimate. To reduce volunteerism to a point that it becomes little more than a FaceBook “like” is to cheapen what it means to support and give yourself to something greater than you are.
Say what you will about associations and nonprofits being efficient, effective, and using all appropriate business tools to be the best they can be in service to their mission, and in having the resources to do it, and knowing when they have achieved success. Associations and nonprofits should do all of those things. But let’s not change their DNA. We lose way too much.
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