Developing Nonprofits on the Entrepreneurial Edge: Sustainability and Performance-Driven Philanthropy

Abstract

My research focuses on determining the components of economic sustainability for a 501(C-3) or similar organization that operates on the entrepreneurial edge in a quasi-capitalist sector. My hypothesis is that there is a sustainable capital and organizational structure that can finance entrepreneurial development and social service organizations abroad that will harness philanthropists that are willing to be cutting edge venture capitalists as well as others who want a proven track record before committing funding. My research will address the following questions: Is there a way to structure a nonprofit so that risk tolerant donors can initiate entrepreneurial philanthropy as an investment while later movers reseed the donor advised accounts of early donors? And, is it possible to conceptualize a mixed revenue structure that includes outright early donor gifts which give way to a franchise fee to reseed donor accounts and sustain future development initiatives? How would the necessary components this performance-driven model be installed in the nonprofit sector and how would they function?