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Business-Non-Profit Convergence?

A new article in the Stanford Social Innovation Review posits that non-profits and businesses are starting to converge -- in terms of how they operate, how they finance themselves and how they create value. In many cases, it?s hard to tell the difference between a big non-profit (like Goodwill or the Red Cross) and a large corporation. As a result, similar challenges are emerging. Just as non-profits must communicate effectively with donors and stakeholders, private firms often now link a positive social message (e.g. around sustainability) to their regular operations. Similarly, non-profits are starting to use venture capital-like funds to finance their operations, and both businesses and non-profits are experimenting with hybrid organizational forms such as cross-sector joint ventures. The authors conclude by arguing that these trends can create positive learning opportunities for both sides, as non-profits can become more entrepreneurial and for-profits can learn how to be more effective contributors to a healthy and sustainable economy. To access the Winter 2007 Stanford Social Innovation Review article, ?Capitalizing on Convergence,? by James E. Austin, Robert Gutierrez, Enrique Ogliasti, and Ezequiel Reficco, visit http://www.ssireview.org/articles/entry/capitalizing_on_convergence/.

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