Unique Challenges of Nonprofit Innovation
Tuesday, October 30th, 2007
I have in the past and continue to work closely with many nonprofit organizations. Over the years I have come to realize that nonprofit organizations face unique and difficult challenges when it comes to innovation. The innovation challenges faced by nonprofits can be traced to two root sources: a lack of capital and strong traditions.
Lack of Capital
Cash flow is always a problem for nonprofit organizations. How can they divert funds to innovative projects when their basic needs are not met? Nonprofit organizations become accustomed to living “donation to donation.” As a result, when some capital is raised, most non-profits put it aside for a rainy day.

We have all hear the term bottom line mentality. This is where all decisions in an organization are based on the bottom line, money. I am sure many of us have operated in such environments. Few companies admit to operating in this way; yet, if we are honest with ourselves nearly all organizations at some level utilize the bottom line mentality.
A quick tip! Take note of when you are most innovative; not just when you are most productive.