Google.org uses open RFP process

Google.org announced a $10M grant program via a Request for Proposals (RFP) process.

We realize that this type of open call for proposals is not the usual model for investment, but we wanted to use a process that was open to new ideas and new entrants.

They are exclusively focusing on entrepreneurs and companies... they already made some grants to nonprofits.

Does this suggest that unique, entrepreneurial innovation doesn't happen in the nonprofit sector? Is t true that only the biggest, best-reputation nonprofits should be invested in? Did they think that there wouldn't be any interesting folks popping up in an RFP for nonprofits?

I'm a firm believer that nonprofit funding is biased to funding winners, not innovators. Something like the Netsquared investment process (kind of an RFP) creates space for those small innovators to emerge. Interestingly enough, however, the Netsquared winner was a bigger, more established organization... not a scrappy start up.