Not Everything Needs to Be a Nonprofit – Let’s Build Ecosystems of Impact Together

When I started my own nonprofit a decade ago, I came from a tech and Wall Street background. That experience shaped how I approached social impact: I moved quickly, used technology strategically, and focused on measurable outcomes. It gave me a clear view of both the opportunities and roadblocks that legacy nonprofits often face—especially when it comes to scaling, securing funding, and telling their story.

Why Do We Default to Nonprofits?

For many, starting a nonprofit feels like the most honorable path to impact. But while the nonprofit model plays a critical role in our society, it can also be limiting.

According to the National Center for Charitable Statistics, over 30% of U.S. nonprofits operate with less than $100,000 annually. That means many organizations are constantly fighting for survival.

Here’s what I’ve seen:

• Funding fragility: Grants and donations are unpredictable and often time-consuming to secure.
• Scaling is slow: Growth depends on fundraising cycles, not customer demand or operational efficiency.
• Storytelling struggles: Many nonprofits struggle to communicate their impact in a compelling, human-centered way—an essential skill in today’s digital world (Soapbox Engage).

The Case for Tech-Driven, Revenue-Generating Impact Models

Coming from tech, I brought a startup mindset: test fast, iterate often, and let data lead. Technology allowed us to do more with less, automate manual work, and expand our reach.

Tools like AI can be force multipliers—giving mission-driven teams the same speed and efficiency advantages as the best startups.

• Profit fuels purpose: Revenue-generating ventures can reinvest earnings into innovation, growth, and talent.
• Agility wins: For-profit impact startups can respond to real-time needs, attract capital, and adapt quickly in a changing world.

Example: Sylvester Mobley of Coded by Kids is using tech to break down barriers in the innovation economy—preparing underrepresented youth for leadership in STEM and entrepreneurship. That’s what scalable impact looks like.

Let’s Not Forget the Small Nonprofits

None of this means we abandon small grassroots organizations. Quite the opposite.

These groups are the heart of community transformation. I’ve seen the passion, grit, and cultural intelligence they bring. But they face unique challenges, especially now, with funding freezes and economic pressure putting them at risk.

Here’s how we can help:

• Empower their storytelling: Stories move people. Data informs—but stories inspire action. Tools like NeonOne’s storytelling guide can help leaders put faces to their mission.
• Build support networks: Grassroots orgs need mentors, resource hubs, and partnership opportunities—not just grants.

The Real Opportunity: Ecosystems of Impact

What if we stopped thinking in silos and started thinking in ecosystems?

An ecosystem of impact is a connected network of nonprofits, for-profits, investors, educators, and community leaders—each doing what they do best, and supporting one another to go further.

“The essence of an entrepreneurial ecosystem is its people and the culture of trust and collaboration that allows them to interact successfully.”

These ecosystems break down barriers, close resource gaps, and allow innovation to scale—without leaving anyone behind.

What You Can Do Today

• Support small nonprofits: Volunteer. Donate. Offer your expertise.
• Champion social enterprises: Invest in mission-driven businesses solving real problems.
• Connect across sectors: Make introductions. Share what you’ve learned.
• Leverage technology and storytelling: Encourage the use of AI and digital tools to extend capacity, not just efficiency.

Final Thought: Let’s Build Boldly and Inclusively

The future of doing good isn’t limited to 501(c)(3) status.

It’s in reimagining what’s possible—using entrepreneurship, technology, and collaboration to create new pathways to impact. But as we build fast and scale big, let’s not forget the community-rooted nonprofits doing life-changing work with limited means.

Let’s build ecosystems of impact that value every contributor—and leave no one behind.

What do you think? How can we better support small nonprofits while embracing innovation? Drop your thoughts or favorite examples of cross-sector collaboration below—let’s learn from each other and build something bigger together.