Which would you rather – be described by what you are or what you are not? “Nonprofit” is a legal term. The norm in the US is corporations designed to make a profit. Thus “non”-profit is the description of a corporation whose purpose is NOT to make a profit for its shareholders. What if we were to focus instead on what nonprofit organizations are? What they are designed to do?
Contributing to the Social Good
Mission driven nonprofits contribute to what many term the ‘social sector.’ They are designed to provide a social good, to address an important issue, to work towards change in society. 1.6 million tax-exempt organizations are registered in the US according the GuideStar and the sector contributes over 9 billion dollars to the American economy. While the majority of nonprofits are small organizations with budget sizes under 1 million, a few ‘block buster’ organizations have budgets over 5 billion dollars. The largest nonprofits are primarily universities and hospital systems.
What is a ‘Sector’?
People commonly discuss the ‘private sector.’ This includes businesses working with the profit motive. The public sector encompasses government. The social sector includes nonprofit organizations – from well-endowed universities to small community based organizations providing services to society’s marginalized. The sector is also sometimes called the ‘third sector.’ I prefer the term social sector to ‘third sector.’ Again this says what the sector is. To know what the third sector is, you have to understand the reference to the other economic sectors.
Grace Social Sector Consulting works with social sector organizations that want to become more strategic, effective and innovative so that they can have greater mission impact. Helping you further your mission that contributes to the greater social good is what we are motivated by. Let’s talk!
My passion is helping nonprofit organizations and associations have a greater mission impact.