Stakeholders influence non-profits both vertically and horizontally. Vertical stakeholders, such as individual donors and funders, have no legal claim or duty vis a vis non-profit outcomes (with the exception of board members), so they can pull funding from a non-profit if they feel they are no longer aligned with the mission of the non-profit or there are conflicts with other stakeholders. For example, a celebrity endorsement could cause a donor or funder to remove or reduce funding from a non-profit. However, synergistic relationships between stakeholders can also form and provide non-profits with the support they need to operate.
Vertical stakeholders can often be a non-profit’s best ally, if leadership recognizes their importance and equips them with the tools they need to become powerful ambassadors. Soliciting feedback from horizontal stakeholders, such as constituents, is the best way to determine if a non-profit’s mission is being operationalized in the right way. It is imperative for non-profits to accurately identify all stakeholders and ensure that these stakeholders are being leveraged appropriately. It is impossible for all stakeholders to be pleased with every decision made by a non-profit’s leadership. However, decisions should be made carefully, based on which stakeholders will be most affected and predictions of how these effects will play out in relation to the success of the non-profit’s mission.