Since the 2007-2008 financial crisis the presence of hybrid models has grown in the charitable sector. In the first large-scale, quantitative study of social entrepreneurs, researchers from Harvard Business School and Echoing Green examine the rise of hybrid models that combine elements of for-profit and nonprofit organizations. While the authors suggest integrated hybrid models offer a promising vehicle to create both social and economic value, they recognize that some critical solutions to social problems are better addressed through traditional grantmaking. Organizations contemplating this hybrid models may be particularly interested in the findings from the study regarding challenges with legal structure, financing, customers and beneficiaries, and organizational culture and talent development. This article can help nonprofit practitioners better understand and confront the challenges faced by hybrids, as well as gain insights about the opportunities and benefits of these new models.
