Thursday, July 2, 2009

Helping Non-Profits Profit

By James G. Pynn

Given the state of the economy in recent months, it is easy to vilify our current economic model as unconcerned with the average citizen. It is easy to forget the contributions of numerous non-profit organizations to easing the financial crisis. There is now a new idea in business today: giving back. Indeed, it is not an idea that has ever seemed to catch on, but indeed, trying times call for helping measures.

Non-profit businesses and organizations have gained considerable ground in the public consciousness. It could be argued this is due to the fact more people need help and indeed, non-profit organizations are there to do just that. To be sure, people enjoy having their money re-invested in social and family services. Whether that re-investment is jobs, infrastructure, or more food, people want to know what they give goes a long way.

Failure to plan is not necessarily a lack of vision, but a lack of focus. The struggle of every non-profit organization, then, seems to be management. As a typical non-profit is not necessarily interested in profit for the sake of merely making one, there tends to be a propensity for non-profits to fold well before their potential has been realized.

A plan is not only essential it is imperative. The failure of a non-profit seldom has to do with the dedication or passion of its employees or its beneficiaries. The failure lies in a lack of foresight. It is well enough to begin a non-profit dedicated to feeding homeless people, but the question is: how? Like a for-profit business, a non-profit must develop and articulate its goals.

For-profit businesses are only in existence to distribute their earnings amongst their shareholders, a non-profit organization, on the other hand, tends to be preoccupied with distributing its earnings to the people or causes it is dedicated to helping. The development of a business model is ironically necessary for the successful non-profit. Without the proper guidance and attention to detail, a non-profit is not long in the tooth.

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