Enhancing the Reach of Socially Missioned Nonprofits: Insights from a TOC-LP Application

Abstract

Socially missioned nonprofit organizations exist to connect at-risk populations to critical healthcare, food, and financial services. However, these organizations face several internal (resource infrastructure, management capability) and external (multiple stakeholders, client demographics and capabilities) constraints within which they must work to attain their goal of helping people in need. The extant academic literature offers a variety of solutions to such allocation problems for use in for-profit organizations. Yet noted differences in the operational systems of for-profit and nonprofit operations limit practitioners’ capabilities to readily leverage these tools. Thus, in this paper, we extend the applicability of classic resource allocation principles to the context of nonprofit operations’ outreach efforts. We describe a detailed case study analysis at one nonprofit organization (SC Thrive) wherein we implemented the theory of constraints–linear programming framework to help maximize the effectiveness of outreach initiatives carried out by the organization. Based on the results from our stepwise, nonlinear yield model, SC Thrive is now capable of doubling the annual number of applications submitted by potential beneficiaries for assistance services. History: This paper was refereed.