How an Innovative Nonprofit Business Model Fueled Growth for SAE International
SAE International, a leader in the automotive, aerospace, and off-road industries, faced a familiar challenge for established nonprofits: their traditional membership-driven revenue model, while effective for decades, constrained growth and innovation. Recognizing the need to diversify and expand beyond membership dues, SAE sought a new approach to increase their impact and influence.
The Roadblock: Fragmentation in a Rapidly Evolving Industry
SAE’s existing B2B affiliate model faced limitations in a fragmented industry landscape. A lack of centralized collaboration, especially in critical areas like autonomous vehicles and cybersecurity, slowed progress on pre-competitive technology development. Competitors struggled to align on safety and technology standards, stifling innovation and delaying industry-wide solutions.
The Solution: A Strategic Shift Guided by Sequence Consulting
In partnership with Sequence Consulting, SAE employed Sequence’s proprietary “Way to Play℠” framework, a strategic approach designed to uncover unmet market needs and leverage organizational strengths. This framework helped SAE redefine their business model, paving the way for an innovative solution that addressed these challenges.
Leveraging SAE’s Strength as a Trusted Convener
Research uncovered SAE’s unique strength: their proven ability to convene diverse industry stakeholders. For decades, they had brought together engineers, executives, and researchers across sectors, creating a neutral platform for collaboration. This ability positioned SAE as the ideal organization to foster cooperation and drive pre-competitive innovation.
The Innovation: SAE Industry Technologies Consortia (SAE ITC)
Capitalizing on this strength, SAE established the SAE Industry Technologies Consortia (SAE ITC). This 501(c)(6) nonprofit organization, operating alongside SAE, provided a safe haven for public and private entities to collaborate on pre-competitive technology development.
A Comprehensive Ecosystem for Innovation
SAE ITC provided more than just a meeting place—it offered a complete ecosystem for collaboration and innovation. Members benefited from:
- Legal and Marketing Support: Streamlined processes for collaborative projects.
- Data and Launch Services: Accelerating the development and implementation of cutting-edge technologies.
- Neutral Ground: A safe, collaborative space to align on critical industry standards and best practices.
This holistic approach allowed SAE ITC to empower its members to bring groundbreaking innovations to market faster and more efficiently.
Transformative Results: A Blueprint for Growth
Sequence’s Way to Play℠ process and the creation of SAE ITC proved transformative for SAE. It helped them discover a lucrative opportunity to generate non-dues revenue by leveraging their unique strength as a convener. This newfound clarity fueled the commitment to SAE ITC, paving the way for rapid business expansion.
- Unprecedented Growth: In just three years, SAE ITC skyrocketed 10X from concept to a $6 million enterprise, proving the game-changing power of a visionary nonprofit business model.
- Shaping Industry Leadership: As the home to 13 groundbreaking consortia, SAE ITC is tackling some of the most pressing challenges across diverse industries, setting new standards for collaboration and progress.
- Financial Empowerment: Achieving complete financial independence within a single year, SAE ITC not only sustains itself but also fuels strong net income growth for the entire SAE organization.
- A Catalyst for Innovation: SAE ITC’s consortia are pioneering revolutionary technologies, accelerating advancements that redefine industries and create lasting impact.
Conclusion
SAE International’s success story exemplifies the power of a strategic approach to nonprofit business models. By identifying unmet market needs and leveraging their unique strengths, they were able to establish themselves as a leader in facilitating cross-industry collaboration and drive innovation within critical sectors.
This not only benefits SAE financially but also fosters a collaborative environment that contributes to safety standards and technological advancements across the industries they serve.
The impact of SAE ITC extends beyond immediate results, paving the way for a future where streamlined communication and collaboration fuel progress across the transportation and technology landscapes.
Takeaways for Nonprofit Business Models
This case study on SAE International offers valuable takeaways for established nonprofits seeking to diversify their revenue streams. The key lies in identifying unmet market needs and leveraging existing strengths. By utilizing a strategic framework like Way to Play℠, nonprofits can uncover hidden assets, such as SAE’s convening power.
This, in turn, can inform the creation of innovative new ventures, like SAE ITC. The success of SAE ITC demonstrates that well-designed nonprofit business models can not only generate significant non-dues revenue but also foster industry collaboration and drive progress in critical areas.
To learn more about high-growth nonprofit business models, please see the AARP’s Non-Dues Startup Soars To $43 Million.
