It is 2025. After the recession of 2009/2010, the social sector underwent a massive paradigm shift as state and federal funding all but dried up for anything but direct, “essential” services. As nonprofits lost more government support, foundations encouraged grantees to reevaluate their business models, fostering mergers, shared services, and new regional infrastructures.

The tax overhaul of 2011 restructured the codes and reporting requirements governing the social sector. At the same time, government recognized how critical nonprofits and foundations had become in meeting the basic human needs of tens of thousands of Americans and enriching the lives of millions more. Capitalizing upon this recognition, New Jersey joined states across the country in creating a new business class, the Low-Profit Limited Liability Corp. (LC3), and the federal government granted special tax status to the “B” (Beneficial) Corp., spurring investment in social entrepreneurism and businesses with a social focus. The emergence of these hybrid structures, coupled with a strategic transformation of the nonprofit world, led to a new marketplace for organizations focused on addressing social needs.

The massive transfer of wealth projected early in the century has become reality by 2025, fueling historic philanthropic investment in nimble entities that prosper in direct proportion to their social impact. The ability of many such organizations to flourish depends increasingly upon their ability to take advantage of the virtuosphere, the social networking universe that engages entrepreneurial minds across the globe in virtual problem solving and helps to ensure the most replicable solutions are put to the broadest possible use. This technology fuels a new era of understanding of the global reach of social problems, significantly increasing funders’ interest in international causes. In addition, idea sharing that helped to create so many thriving nonprofits, B Corps, and LC3s feeds a wave of exchange that leads many foundations to significantly alter grantmaking and measurement strategies other key aspects of their work.

• Is this a plausible scenario? Why or why not?
• What elements of this scenario relate to your organization’s future?
• What could this mean for your organization and its relationships with the other parties that comprise our sector in the coming years?
• What do you need to do more – or less – of to make your vision a reality?