For many of us, innovation is a term that normally comes to mind when we think of businesses rather than the non-profit sector. Many of us are well aware that without new ideas that lead to new products, businesses lose their edge over competitors. Eventually, a lack of innovation ultimately leads to stagnation and the loss of market share, and increases the risk of business failure.

Just because charities and other causes aren’t in the business to make a profit, however, doesn’t mean that innovation isn’t still an important concern for NFPs. Just like a for-profit company, non-profit organisations must be constantly on the lookout for ways to increase their innovation. Otherwise, they run the risk of becoming inefficient, ineffective, and missing out on opportunities to grow and expand their reach.

Innovation Across the NFP Sector According to the Innovation Index

According to a recent article published at Probono Australia, results from the second annual Innovation Index indicate that the NFP sector overall still has a ways to go before innovation becomes a primary focus for most NFPs.

While the sector as a whole obtained a rank of 58% on the innovation scale, the index also found that only 37% of the NFPs surveyed said that creating an innovation strategy was a focus for their organisation. These results are somewhat surprising given the fact that innovation has the potential to impact NFP’s in so many positive ways, from increasing an NFPs’ visibility and ability to secure volunteers and additional funds to reducing operating costs.

Roadblocks to Innovation

Even when some stakeholders wish to pursue innovation at their NFP, the report found that there are a number of obstacles that non-profits face when they wish to adopt that latest technology or newer ways to doing things. Common challenges to increasing innovation at NFPs include: burdensome governmental regulations and requirements, reluctance on the part of NFP boards, management or other staff to adopt social media and other technologies, lack of funding to pursue newer technology and other innovative tools, having a culture of inflexibility that discourages risk taking or otherwise disrupting the status quo.

Examples of Innovative NFPs

While many NFPs remain reluctant to focus scarce resources on innovation, the report also uncovered some startling examples of non-profits who have made innovation a priority for their NFP. Based on results of the Innovation Index, the Cure Brain Cancer Foundation topped the chart, with Oxfam Australia taking the top spot when ranked for their innovation by their NFP peers. Both charities stand out for their quick adoption of technologies such as social media that make it easy for donors, volunteers, and members of the community to connect with their NFP. As one makes their way through the list, it becomes apparent that regardless of the age or size of the non-profit, the NFPs that are truly thriving in Australia and elsewhere are the ones that have actively pursued innovation.

How does your NFP compare to the non-profit sector as a whole? What steps can you take to increase innovation at your NFP?