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Sustainability is one of the biggest issues, if not THE biggest, facing the non-profit sector today. Non-profits are fast looking at new models where they can generate their own revenue and reduce donor dependency. And donors are
increasingly expecting non-profits to have sustainability strategies in place.
Talking about applying about business ideas, generating income and profit margins tends to provoke a reaction amongst many NPOs. Over the years, I've heard the following comments:
? It is wrong to make a profit
? Making a profit means stealing from beneficiaries or donors
? Our organization will lose its soul or essence if it makes a profit.
? Making a profit is for businesses not NPOs
? It will distract us from our mission (aka ?mission drift')
? We will lose our NPO status
? We don't have business skills to make a profit
? Our donors don't want us to make a profit
? The type of work we do does not allow us to make a profit (e.g. our
beneficiaries are poor).
On the positive side, there has been increased acceptance of these ideas since I started promoting them in 1996.
The term ?Sustainability' is a misnomer that has become jargon, and jargon leads to fuzzy thinking.
? Organizations are always at risk.
? It is impossible to predict the future with certainty. Big changes (e.g. ?Arab spring', global financial crisis, Marikana miners' strike) are frequently
? Instead of using terms such as ?sustainability', it is better to be more precise
in our language. We should instead discuss how enterprises can improve
their strategic position, and generate the income and profits required to
increase their social impact and reduce their financial risk.
Got a question about the product? Email us at [email protected] or ask the author directly by using the "Ask the Author a Question" form. If you cannot view the preview above this document description, go here to view the large preview instead.
Source: Best Practices in Nonprofit PDF: Income Generation Models for NGOs PDF (PDF) Document, GBSH Consult Group
ABOUT THE AUTHOR: GBSH CONSULT GROUP
GBSH Consult is a tier-one first-to-market multi award winning global think-tank, strategy and management consulting firm focused on serving the marketplace for next generation technologies and world best practices in consulting. GBSH Consult delivers essential advantage to the world's top influential businesses, governments, and organizations.
The company offers consulting, outsourcing and technology services and solutions to organization both on the commercial and the government offer significant competitive advantages to clients in the growing markets for best practices in revenue growth, venture creation, global expansion, restructuring, turn around and much more
GBSH Consult Group has published 3 additional documents on Flevy.
This business document is categorized under the function(s): NGOs Strategy, Marketing, & Sales
It applies to All Industries
File Size: 484.2 KB
Number of Pages: 17
Related Topic(s): Nonprofit
Purchase includes lifetime product updates. After your purchase, you will receive an email to download this document.
Initial upload date (first version): May 30, 2020
Most recent version published: Jun 2, 2020
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