Mission‐first Social Enterprises: A Case Study of How Three Nonprofit Organizations Avoided Mission Drift when Forming and Operating Social Enterprises

The purpose of this study was to examine how leaders of nonprofit social enterprises manage the tension between social mission and financial goals to avoid mission drift. The study employed a case study/cross‐case analysis design and used the qualitative research methods of interviewing, document review, and participant observation. We found tremendous variation in the strategies created for the organizations included in the study ( n = 3). We labeled strategies as (a) structured ignorance, (b) problem reframing, and (c) defensible trade‐offs. Further research is needed to identify a comprehensive typology of strategies; however, there are immediate practical and social implications of this study. Specifically, the strategies identified here can be considered by nonprofit practitioners struggling with the mission/money tension. Additionally, these strategies challenge commonly held beliefs about the relationship among nonprofits, social service, and revenue generating activities.