Use of the business model canvas to create a clear, concise statement of what your organization will provide is not a new idea to nonprofit leaders.

What was new in a session entitled “Business Model Canvas: Creating Collaborative and Transparent Business Models” during the AICPA Not-For-Profit Industry Conference in Washington D.C., was the concept of using the business model canvas to create transparency and trust in nonprofit organizations so donors get a clear picture of where their donations are funding.

Arun Sardana, senior vice president of investments and senior institutional consultant at the UBS Institutional Consulting Group, shared how an organization can best utilize this approach to create transparency:

* Address your customer/beneficiary segments to create a list of stakeholders you are currently serving.
* Establish or re-establish your value proposition. What makes it unique from other alternatives? Create a list of value proposition(s) for each segment your organization addresses.
* Link important channels, sales and service, to your segment.
* Connect each segment with the most suited type of intervention.
* Brainstorm ideas on how your organization can enhance its value proposition continually to appeal to your segment.
* Use key resources to surpass competitors and establish key activities. Allow key partners and stakeholders to participate.

By following these ideas, your organization can establish clearly defined and measurable outcomes that become transparent to key stakeholders involved in your mission. Not only this, but your organization is given quantifiable measurement outcomes that drive your value proposition so that nonprofit organizations can address their most valuable segments and increase the reach of their mission.