What the Nonprofits Are Teaching Business

THE GIRL SCOUTS, the Red Cross, the pastoral churches—our nonprofit organizations—are becoming America’s management leaders. In two areas, strategy and the effectiveness of the board, they are practicing what most American businesses only preach. And in the most crucial area—the motivation and productivity of knowledge workers—they are truly pioneers, working out the policies and practices that business will have to learn tomorrow.

Few people are aware that the nonprofit sector is by far America’s largest employer. Every other adult—a total of 80 million-plus people—works as a volunteer, ...

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