Social Capital for Nonprofit Organizations and Strategies for Fundraising Growth

What is social capital? Social capital is the expected benefits derived from preferential collaboration between groups and individuals.  With good use of social capital, a nonprofit organization can develop a wide network of connections. These connections help establish the nonprofits’ power in fundraising ability, access to information, control of stakeholders, and development of goodwill among the community.

According to the article “Creating Social Capital for Not-For-Profit Support” by Arleen Thomas, Senior Vice-President of American Institute of CPAs, nonprofits must understand social capital in order to beneficially leverage donors and constituents.  The article discusses two effective forms of social capital, bonding and bridging. Bonding is the development of close personal relations with stakeholders that stem from shared aims and bridging is the development of networks between the nonprofit and its stakeholders.

This article also illustrates how the use of performance measurement and management controls can further develop a nonprofit’s social capital.  Look for our next post, which will discuss an article on this topic.


AVF Consulting is a leading Serenic partner and Microsoft Silver ERP partner providing financial, donor, and grant management software to nonprofit organizations and NGOs across the United States. Visit our events page and register for a complimentary webinar to see if Serenic Navigator is right for your nonprofit accounting and fundraising needs.

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ERP professionals providing insight and advice for not for profit organizations.