In recent months there has been an increasing call among writers and thinkers in the social sector for growth capital in the nonprofit sector.  In the for-profit sector, successful businesses reach a point at which they need significant investment capital (separate from operating revenue) to grow their business to the next level.  Successful nonprofits have similar needs.  However, foundations and individuals, for the most part, are hesitant to fund something other than program or general operating expenses.  A handful of foundations, though, are starting to realize that making a significant ($1 million+) one-time investment in a nonprofit that has proven success and needs capital to scale their program makes a lot of sense.  In the most recent issue of the Standford Social Innovation Review, you can read more about Money to Grow On. Their online articles are for subscribers only, so if you aren’t already, you should consider becoming one.  Money very well spent.

About the Author: Nell Edgington is President of Social Velocity (www.socialvelocity.net), a management consulting firm leading nonprofits to greater social impact and financial sustainability. Social Velocity helps nonprofits grow their programs, bring more money in the door, and use resources more effectively. For more information, check out Social Velocity consulting services and clients.

Follow me on Twitter | Find us on Facebook | Sign up for our E-Newsletter

Related posts:

1. In the Trenches Raising Growth Capital: An Interview with Anna Land
2. The Controversy: Small Nonprofits and Growth Capital
3. The Social Capital Markets Conference 3.0