In today’s fast-changing world, nonprofits face bigger challenges than ever before. To survive and thrive, these organizations need to think and act more like businesses. That doesn’t mean losing their sense of purpose or abandoning their mission—it means strengthening their impact by being smarter and more strategic. In short: adopting a business mindset. As Viken Mikaelian, CEO of PlannedGiving.com, often says, running a nonprofit isn’t an excuse to ignore business principles. It’s the key to long-term success.
Playing It Safe Won’t Cut It
Let’s face it—most people in the nonprofit world play it safe. It’s human nature. Since the beginning of time, we’ve been wired to avoid risks because that’s how we survive. But while this instinct may protect us from danger, it also holds us back. Success requires doing bold, unconventional things that often draw criticism. And nonprofits are not immune from this.
Here’s the hard truth: criticism is the cost of entry to success. Most people aren’t willing to pay it. Nonprofits tend to stick to what’s comfortable, but comfort rarely leads to greatness.
Another challenge is the widespread belief that showing up is enough. Many nonprofits embrace a “participation trophy” mentality, where effort is celebrated regardless of the outcome. But the world doesn’t reward potential—it rewards action. Results matter. This mindset keeps organizations stuck in mediocrity and leaves employees wondering why their hard work doesn’t pay off.
And what happens when things go wrong? Too often, nonprofit employees panic and hide. Mistakes and setbacks are inevitable, but no one ever became successful—or built a thriving nonprofit—by panicking. Success comes from resilience, not retreating when the going gets tough.
The Problem With “Free”
There’s also a belief in the nonprofit sector that many things should be free. People forget that someone has to pay for the salaries, tools, and resources needed to produce those “free” things. This mentality stems from a misunderstanding of how the world works and reflects a reluctance to engage with business realities. Without financial sustainability, no nonprofit can achieve its mission.
A Smarter Approach
If nonprofits want to succeed, they need to adopt a business mindset. Here’s how:
1. Take Risks and Embrace Criticism
Playing it safe isn’t enough. Nonprofits need to take calculated risks, whether it’s launching a new program, investing in technology, or trying something entirely different. Criticism will come—it’s proof that you’re making an impact.
2. Build a Strong Brand
Branding isn’t just for businesses. A strong brand establishes trust and authority, both of which are essential for fundraising. As Kevin L. Brown from Philanthropy.org explains, a clear and compelling brand inspires confidence and creates a foundation for everything a nonprofit does.
3. Treat Marketing as an Investment
Marketing isn’t an unnecessary expense—it’s one of the smartest investments a nonprofit can make. Digital campaigns, social media, and email outreach can help organizations connect with donors, tell their story, and increase their impact.
4. Reward Results, Not Just Participation
Celebrate achievements that drive meaningful outcomes. Focus on those who take initiative and produce results. Moving beyond a participation-based mindset to a business mindset not only motivates employees, but also sets a standard for excellence.
5. Build Resilience
Mistakes are part of the journey. When challenges arise, don’t panic—step up. Resilient teams that tackle problems head-on are the ones that grow and thrive.
6. Leverage Outside Talent
Sometimes, the best way to innovate is to bring in fresh perspectives. Hiring freelancers or contractors can provide specialized skills without increasing overhead. Mikaelian strongly recommends this approach to keep organizations competitive.
The Power of Planned Giving
One of the most underused tools in the nonprofit sector is planned giving. It’s a long-term strategy that provides stability and builds lasting relationships with donors. Yet, many nonprofits overlook it in favor of immediate fundraising goals. Viken Mikaelian is a passionate advocate for planned giving because it’s a game-changer for nonprofits.
Time to Step Up
Running a nonprofit like a business doesn’t mean abandoning your mission—it means amplifying your impact. Playing it safe, avoiding competition, or panicking when things go wrong won’t get you there. The world rewards bold action, not potential.
If nonprofits want to make a difference, they need to focus on what matters. Take action. Invest in growth. Embrace criticism. Adopt a business mindset. And most importantly, don’t be afraid to do the hard things that lead to real success.
The bottom line? You need to run your nonprofit like a business, because the organizations that adapt will not only survive—they’ll thrive.
