Stanford Social Innovation Review: Invisible Assets

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The spring issue of the Stanford Social Innovation Review makes the case that nonprofits can better evaluate and deploy their capacity to achieve their missions by accounting for the assets and liabilities that don’t necessarily appear on their financial statements. These are “invisible” and “intangible” assets (IAs).

Some IAs may have longer life spans. The 21st century has seen a huge increase in the number of nonprofit organizations. But for many long-lived nonprofits, reputations and brands persist from the last century. These assets can contribute to their performance either via operational activities or through reputation and branding. What are IAs worth? A three-part test helps to understand their presence and value by considering their value, durability, and cost.

Read the entire piece here.