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Nonprofits: why leaders should let practice refine their purpose

Nonprofit organizations are often founded on big, aspirational visions — but how does a nonprofit’s social purpose actually take shape on the ground? And what happens when the original vision doesn’t match reality?

05/26/2026

3 min

In this video, Farah KODEIH, and co-author Henri SCHILDT (Professor at Aalto University), share the findings of their study of a Finnish nonprofit organization.

The researchers followed the nonprofit over five years — from its founding during the European refugee crisis through multiple phases of growth, tension, and transformation. The founders launched the organization with an inspiring vision: to integrate refugees into Finnish society through technology entrepreneurship. It was a compelling story that attracted volunteers and donors alike.

“But as volunteers began working directly with beneficiaries, they discovered that this vision didn’t match the needs on the ground.,” explains Professor KODEIH. “Most refugees weren’t looking to launch startups — they needed practical pathways into the labor market. This created real tension within the organization.”

The researchers found that a nonprofit’s purpose isn’t simply set by founders and preserved over time. “It’s co-constructed through an ongoing push and pull between three forces: leaders’ aspirational narratives, volunteers and staff’s shared understandings, and day-to-day practices with beneficiaries,” adds Professor SCHILDT. “When these fall out of alignment, it can spark conflict — but that conflict can also be productive.”

In the case they studied, frontline volunteers ultimately steered the organization from technology entrepreneurship toward labor-market integration — a purpose grounded in real, observable impact.

“Here’s the key insight: leaders often guard against mission drift, but frontline volunteers and staff guard against irrelevance. By centering what actually helps beneficiaries, they can steer purpose toward tangible impact,” adds Professor SCHILDT.

For nonprofit leaders and boards, their message is clear: don’t just protect your aspirations, let practice refine your purpose. “Align your story with tangible impact — or risk becoming irrelevant to the very people you set out to serve.”

Find out more in their study:

“Social Purpose Formation and Evolution in Nonprofit Organizations” (Organization Science, 2025) by Farah Kodeih, Henri Schildt & Emma Sandström (Aalto University), Davide Ravasi (UCL) and Jukka-Pekka Heikkilä (Independent).