It’s a Dance: Risk and Innovation in Nonprofit Organizations

My parents asked me not to go to my Junior/Senior prom for church and teenage hormone reasons. It felt very unfair, but I complied with their wishes my 11th grade year. However, when I was a senior, I went.

AND I HAD THE TIME OF MY LIFE.

Part of me wants to scrap the nonprofit angle of this post and just write about righteous indignation, but I don’t believe that will actually help anyone. Screen candy, but nothing helpful.

Here was my reality. You can be fairly certain that any kid whose parents asked (told?) them not to attend prom because of church and hormone reasons doesn’t know how to dance. That was me. I did not know how to dance. And to be fair it would have been kind of amazing if I just picked it all up when I decided to go– a week before the big event. My dancing trajectory until two weeks before prom was “zero dancing.” [NOTE: Cue the feet intro of the 1984 version of Footloose.]

Zero dancing is a half-truth. I knew how to slow dance with a partner—that was easy. Susan was my date, and we had been best friends for 14 of the 18 years we had been alive. That made slow dancing easy. Also Lonestar. Lonestar came out with “Amazed” that year, and they played it 4 times that night. So, slow dancing was no problem. It was the bumping songs… It was Destiny’s Child, Nelly, and Sisqo that undid me. How did everyone already know so well what to do with their hands and legs in those songs? I just called it quits. Too much church and too many hormones.

Almost 25 years later, and the only songs I dance to are the Bluey Theme Song and “Amazed” by Lonestar. I frequently meet with nonprofit leaders who are passionate but worn out from the burden of their work. And I wonder if we all need a little more Sisqo playing on our cars’ bluetooth.

Ok. Brace yourself for a hard right turn here. We know you are asking, “John, what does Sisqo have in common with running a multi-level nonprofit?” Well, I’m glad you asked. One of our biggest goals for our nonprofit partners (and for ourselves, actually) is to encourage them to not take themselves too seriously. We’re here to get you back out on the dance floor, and to stop operating out of a place of fear. Remember when you used to take risks? Yeah, let’s get back to that mindset.

The prior two posts focus on scarcity and stagnation in the nonprofit ecosystem. They outline board realities and vulnerabilities. They predict that your key challenges may be mindset challenges rather than operational. And they refer to taking calculated risks more than a few times. Taking risks is almost a requirement for key organizational leadership, and unfortunately, taking risks as a firm feels very distant in the rear view. This final post in the series is all about courage and decisiveness– being courageous enough to take a calculated risk and executing it fully. I like to think of risk taking as dancing.

The Slow Dance of Risk and Innovation:

Your nonprofit, by its nature, is driven by a mission (probably after too many long meetings about mission statements and core values) to make a societal impact for good. However, built within the very idea of the word mission is the reality that achieving meaningful change often involves stepping into the unknown and taking risks. Simple change is not a mission. Meaningful (and complex) change is a mission and requires a little risk and vulnerability. Embracing risk doesn't mean being reckless; rather, it's about being willing to experiment, learn from failures, and adapt strategies accordingly. In 3:4 time, this is the slow dance waltz. Experiment, learn, adapt.

Let’s be really honest here. You lead in a sector where resources are scarce, and therefore, calculated risk-taking becomes an essential tool for driving innovation. When your nonprofit fearlessly explores new avenues and adopts innovative approaches, it is better positioned to create lasting change. Whether it's testing a new fundraising model (we can coach you through several), leveraging technology to amplify outreach, doing a brand new thing with your communication philosophy, or forging unconventional partnerships, risk-taking will be a catalyst for transformative impact.

NOTE: Lurtz & Kreutzer (2017) explore Entrepreneurial Orientation (EO) in the nonprofit sector with a fascinating qualitative research study at World Vision Germany. You will see similar themes in their work: risk-taking, innovation, resource competition, and collaboration. As you can imagine, JSS will be writing about EO, social entrepreneurship, and nonprofit governance in the near future. From the Lurtz & Kreutzer:

How can EO be conceptualized in a nonprofit setting? To investigate this research question, we draw on longitudinal real-time data about the pre-start-up phase of a social venture at World Vision Germany (WVG). Our article makes the following core contributions. First, we shift the focus of current research on social entrepreneurship from the individual to the organizational level and show how entrepreneurial behavior of nonprofit organizations shapes the process of social venture creation. Second, we critically revisit EO by transferring the construct to the nonprofit setting. We carefully translate and enlarge the elements of EO into a new refined conceptualization of the construct including also social next to financial risk taking, and collaboration. Third, with our findings on EO, we highlight the complex nature of risk taking and innovation of nonprofit organizations. (p. 93-94)

The Line Dance of Collaboration:

In the face of risk and scarcity, collaboration with other entities emerges as a primary strategy. Your nonprofit will amplify its impact by forming partnerships with like-minded organizations, sharing resources, and collaborating on initiatives. By pooling expertise and resources, you will navigate challenges more effectively and create a collective impact that surpasses what any single organization could achieve alone.

Let’s not stop there. Collaboration also serves as a risk mitigation strategy. When you share responsibilities and expertise, you are contributing to more robust and resilient programs in both organizations. Not to mention that the line dance of collaboration will certainly open doors to new funding opportunities and expand the reach of your nonprofit’s mission. Collaboration is both mindset and a practice; they are your left and right cowboy boot on the dance floor.

The DJ Announces This Will Be the Last Song:

Even with remarkable leadership, you (and your nonprofit organization) are not exempt from the realities of risk and scarcity. However, when you view these challenges as opportunities for growth and innovation, then you are better equipped to make a lasting impact. By embracing calculated risk-taking, leveraging creativity in the face of scarcity, and fostering collaborative efforts, you will fully navigate the complexities of your mission-driven work and contribute to positive, sustainable change in society. As this meaningful sector continues to evolve, the ability to adapt and thrive amidst uncertainty will be a defining factor for nonprofits committed to making a difference. We like to think of adapting and thriving as being, “in the rise.” So, watch for rising.

One more song for just the sweethearts.

Lurtz, K., & Kreutzer, K. (2017). Entrepreneurial Orientation and Social Venture Creation in Nonprofit Organizations: The Pivotal Role of Social Risk Taking and Collaboration. Nonprofit and Voluntary Sector Quarterly, 46(1), 92–115. https://doi.org/10.1177/0899764016654221