All corporations, whether 'for profit' or nonprofit, exist
to solve a problem or create value for others. The
critical difference is non-profits are organizations that
have a social impact.
Nonprofits are "selling" a product, service or
program, that offers to solve a social problem. From
poverty, to children and women, to environmental conservation and animal protection, non-profit organizations are driven by a mission and aim to meet society's needs. When nonprofits are run effectively and efficiently, profits are generated. Instead of increasing financial margins, the profit is, ultimately, social impact.
However akin to for-profit business, nonprofits tend to be criticized when they're found to operate "too much" like a business. Why?
In the below TED Talk, Activist and Philanthropist Dan Pallotta, shares his thoughts on the damaging effects of viewing nonprofit charities and business as having "separate rulebooks". From not being able to offer competitive compensation packages to retain skilled employees, to being criticized for investing in overhead in order to elicit greater donor reach and retention, to limiting innovative fundraising platforms, nonprofit charities are at a significant disadvantage when trying to create the "profits" needs to create social change.
One Ndoto is in the business of eliminating poverty. By collaborating with local leaders to develop and implement innovative educational programming, we aim to break the cycle of poverty experienced around the world. We believe education is the key to self-sustainability. In far too many areas around the globe, education is inaccessible - whether it be due to gender, financial strains or geographic limitations. These barriers to education, and therefore an educated population, have a direct impact on poverty.
One Ndoto "sells" the opportunity to make a social impact on poverty. This translates to real life investment in the lives of young men in Tanzania whom are learning the skills they need to become self-sufficient and transition off the streets. One Ndoto's flagship project, the Pamoja Tunaweza Boys & Girls Club, ensures street-connected youth have access to innovative educational programming that propels them to reach their dreams. One Ndoto applies guidelines exercised in for-profit business, such as fair and equitable salaries and innovative programming, to ensure the "profits" we secure are enough to make the greatest impact on poverty possible.
This post was written by Emily Molzan, Executive Director of One Ndoto Canada.