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For-profit executives use business models—such as “low-cost provider” or “the razor and the razor blade"—as a shorthand way to describe and understand the way companies are built and sustained. Nonprofit executives, to their detriment, are not as explicit about their funding models and have not had an equivalent lexicon—until now. 

New Media Business Models and the Economics of Community

We can and should recast the discussion from economics of impressions to the economics of communities.

The common deal breaker? A sustainable funding model. Nonprofits can likewise use this process to figure out whether and how they can attract growth capital.

In the for-profit world, the term “investment” has clear meaning and investors have sophisticated techniques for spotting and growing the most promising companies. Yet foundations and other nonprofit donors have not developed similar clarity or approaches. As a result, the nonprofit sector’s greatest gems often languish well below their full potential. By better translating for-profit concepts, donors can learn how to scout out and grow the best nonprofits. Likewise, certain nonprofits can take a page from business’s playbook and learn how to attract cash for expansion.

Vision and Mission: Seven Suggestions Why You Need Both

"Businesses built to operate in the Networked World are as different from the Industrial Age models as a computer is from a multi-plane camera. Networked organizations are more biological than industrial. They resemble their employees more than their employees resemble them. They are highly adaptive, mobile, open, sensitive to their environment, and ultra-responsive. They continuously evolve, nurtured by a steady stream of intelligent input from inside and outside the organization. In a networked organization, where good ideas originate is not half as important as how–-and how frequently—those good ideas become reality. Good managers don’t try to control their brand’s narrative but, rather, to foster an environment in which it can be liberated, expanded and unleashed across networks. The emphasis is not on following a script, but on improvisation."