What Established Nonprofits Can Learn From Startup Organizations

Welcome to the latest edition of Moving Forward, a newsletter designed to help nonprofits exchange ideas and learn from one another to unlock the full potential of the sector. 

While there are certainly benefits that come with being a well-established nonprofit, such as name recognition, there’s a lot that can be learned from emerging players. To find out more about the keys to startup success, we spoke to Subhashree Dutta , Managing Partner, Social Entrepreneurship, at The/Nudge Institute .

Nonprofits and startups have much more in common than many might think. When you think of the similarities, what comes to mind that may surprise experienced nonprofit professionals unfamiliar with the startup world? 

The funding and talent challenges that startups face are also a reality in the nonprofit world.  It does not matter that the customer may not be a paying customer in the nonprofit world — product market fit is equally important for nonprofits to create impact at scale.

At The/Nudge Centre for Social Innovation, you and your team have supported both social entrepreneurs and 100+ early-stage nonprofits across India. Tell us about a particularly successful startup organization you've incubated and what made them excel.

It is very difficult to single one out. We have 17 Forbes 30 Under 30 in our alumni, as well as Mulago fellows, Acumen fellows, Ashoka Fellows, Echoing Green fellows, Schwab fellows, Chevening scholars, Dalai Lama fellows, Gratitude Network Fellows, etc. Five alumni have also received Niti Aayog Awards for Women transforming India. We recently released a book on our 100+ alumni which can be found here.

In our entrepreneurs, we look for a DNA of speed, scale, and innovation. One example is RightWalk Foundation , which co-shapes public policies and has unlocked more than Rs. 800 crores [approximately $97 million USD] of public funds at a multiple of 100x its budget. They have worked with over 700,000 underserved children and provided over 70,000 apprenticeship opportunities.

Other examples include Khushi Baby , the largest digital non-government health platform in India and the nodal agency to the Government of Rajasthan, reaching over 40 million beneficiaries, and Intelehealth , an open source technology platform that has reached 46 million. Leadership For Equity , Mantra4Change , Peepul , Madhi Foundation , The Education Alliance , and Transform Schools are enabling systemic change in education, working with over 700,000 schools and over 50 million children across several states.

Aside from adequate funding, is there a common aspect that you think most successful nonprofit startups all share? Why do you think this factor is critical to their success? 

Most successful nonprofits have clarity in their theory of change or what impact they want to make. 

They are also able to attract and retain talent, despite the significantly lower compensation structures. Plus, they recognize the value of the government being a key player in their scale journey.

Can you share a top takeaway or piece of advice for established nonprofits that are seeking to be more like nimble startup organizations?

Hire people with an entrepreneurial mindset. Look for people with a strong sense of ownership, bias for action, and unwavering optimism.

Have you worked at a nonprofit startup? What are some lessons you’d share with other organizations? Share your thoughts in the comments below!

Itofa Ivarah , Founder of Churchonthestreetng and Senior Development Specialist at My9jafoodbank , shares some advice and affirmations for nonprofit founders. 

Kelly Mortvedt, MA, CVA , Volunteer Resource Manager at Second Harvest Heartland , shares a change management lesson learned at the gym.

Arthur Chan , Vice President of Diversity, Equity and Inclusion (DEI) at Planned Parenthood Mar Monte , highlights what DEI progress often looks like (and what it doesn’t look like). 

• The Power of Proximity: How Nonprofit Startup Leaders Harness Community Insights: Nonprofit consultant Kimberly O'Neil discusses why staying closely connected to the communities you serve can be a catalyst for success. 
• Lean Startup for Nonprofits: Social entrepreneur Suzanne Smith outlines a six-step model for building a more sustainable, scalable nonprofit. 
• How This Senior HR Director Got Her Nonprofit Excited About Learning & Development: You can’t grow your organization without nurturing your employees’ growth. Learn how one Toronto-based nonprofit earned employee buy-in for its learning and development program. 

Is there a particular topic you'd like us to cover or a nonprofit thought leader you'd love to hear from? Let us know in the comments!