Better Business Models For Nonprofits
image sources: Surfrider Foundation and Patagonia
So many businesses have been incorporating “nonprofit” behaviors for years now —think Toms Shoes “one-for-one” program or Patagonias “1% for the planet” — but what about nonprofits? What kinds of for-profit behaviors are nonprofits trying to adopt or adapt to?
Doing Good Is Good For Business
Patagonia is famous for trailblazing the way in the business world approaches corporate social responsibility. A family business owned by Yvon and Malinda Chouinard, Patagonia’s mission is to “build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis.” Looking at their corporate responsibility on their website it makes a lot of business sense and clearly distinguishes themselves from the North Face and other brands in their category. Patagonia continues to donate 1 percent of sales to environmental nonprofits, and in 2016 gave 100 percent of Black Friday sales—about $10 million—to environmental groups. I highly recommend a Time article that came out earlier this year.
Yes, the company is easily criticized for discouraging capitalistic tendencies while also being very clever and aggressive in its marketing practices. But in my opinion, there is a useful lesson here that the nonprofit sector should not ignore. Best business practices are still applicable.
The Profitable Nonprofit
Having grown up in San Diego, I can remember seeing Surfrider volunteers scouring the many beaches picking up small pieces of trash. Based in California with over 50,000 members and 70 chapters, mostly around the United States, The Surfrider Foundation is committed to protecting the oceans, waves, and beaches. They leverage their activist network to coordinate beach cleanups, measure water quality, plastic pollution reduction, coastal development policies, and so much more. Check out their website for more info. They also built a really cool wikipedia type of resource that is community driven: http://beachapedia.org/
Part of the way they have built such a powerful and recognizable brand is through celebrity/brand partnerships and the online sale of products such as clothing and even flags. Their instagram alone deserves some respect for how well they mix product advertisements with foundation updates and beautiful photography.
I myself could not resist purchasing one of their flags after having watched this inspiration video that they produced. To me, purchasing a flag was more about spreading awareness and being a part of a movement.
video source: www.surfrider.org
“Just as this land is your land, this ocean is your ocean. Our waves are as American as our mountains. Our water, as vital as our soil. If our ocean dies, so will our land. The future of our great land is directly tied to the future of our great oceans. We are the United States and Oceans of America.”
—”United States and Oceans of America“ Campaign Excerpt
Call To Actions
I love supporting a good cause, but I also love products that remind me that I’m here for a reason, to help make the world a less horrible place.
If the for-profit world can successfully leverage nonprofit behaviors, why can’t nonprofits do the opposite? A sustainable business practice is sustainable no matter what, whether you’re making money or making a difference.
-Reuben