Question

I feel as innovation is a luxury to non-profit organization versus for-profit organizations, wouldn’t you agree? Why or why not?

Answer 1

Business model innovation has arrived in the nonprofit sphere. The Union & Fifth non-profit is a major distributor of luxury internet resale garments. All inventory comes from women's donations with wardrobes complete of high-end brand clothes, shoes, purses, and almost any other products you can imagine. Even celebrities such as Kelly Osborne and Lonnie Anderson jumped on the gift bandwagon of Union & Fifth. It gets better: Anyone who donates clothes to Union & Fifth can choose any charity of their choice and 50% of all net income from selling their clothes goes straight to their chosen cause. It's a win - win-win company model-those who donate get a tax deduction while promoting what they care about; customers get excellent deal while seeing how their purchase will make the world a better place; and Union & Fifth produces a viable company model that provides it more control than an annual fundraising drive.

And then there is the trendy Notes4Hope whose mission is to bring together individuals and live music to raise resources and raise awareness in order to treat and deter breast cancer. Notes4Hope basically organizes really cool concerts such as Mat Kearney and Luce, selling tickets to the concert-goers that are deemed tax deductible donations. Now that's a win - win.

Partnerships are about innovation. What are the profit-making businesses that can provide you with resources or income in exchange for favorable press or promotion from working with you? Union & Fifth associates with brand names such as Eileen Fischer and Seychelles Footwear donating overstock items or providing goods for sale through the internet shop of Union & Fifth.

Running a non-profit does not imply eliminating profit from your thinking in today's globe. Whatever you do to serve the world, you can probably do more of it by innovating your company model in a more predictably viable manner.