Creating a Social Value Added Benefit Through an Informal Collaborative Military Centered Nonprofit Network

Abstract

Over the next 50 years, an intergenerational transfer of wealth is expected to occur between elderly adults and aging baby boomers and their families, with an estimated $6 trillion projected to go directly to charitable causes. These resources in search of a cause frequently require proof of concrete social returns from their investments, especially given that many new donors are adopting a high-impact, entrepreneurial approach to their giving strategy. If nonprofit organizations can successfully demonstrate high performance, then new sources of funding will flow and the sector will expand by creating a perceived value (Rangan, Leonard and McDonald, 2008).

Along those lines, most conversant nonprofit organizations understand that the purpose of any social entity is to create value for its stakeholders who are inextricably linked. Hence, it stands to reason that sustainable value cannot be created for one group unless it is created for all stakeholders. Therefore, it would seem prudent to suggest that the first focus should be on creating a social value added benefit (SVAB) for recipients in need of assistance; followed closely by donors, who no longer view their contributions as gifts but are focused more on a social return on their investment (O’Malley, 1998; Drucker, 1990).

Galaskiewicz, Bielefeld and Dowell (2006) state that it is people’s interest in being identified with something worthwhile along with others who support it that drives their gifts of time and money. This study reinforces the researcher’s belief that a collaborative military centered nonprofit network (CMCNN) is a highly effective vehicle in providing access to information that can help military nonprofit organizations improve their double bottom line, both social and financial. In turn, this helps build organizational capacity in order to further long-term sustainability, enhance their mission impact, and helps lead to increased contributions while operating under a current austere economic environment.