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    Strategic Issues in Not-For-Profit Organizations

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    Boyd Mearns
    This document discusses strategic issues in not-for-profit organizations. It defines not-for-profits as organizations that provide services or goods without the intention of earning a profit, while public sector organizations are not-for-profits created and regulated by the government. Not-for-profits make up a large portion of the global workforce and provide important services that for-profit companies are unwilling or unable to. However, they face challenges in defining success, fundraising, and attracting talent. Strategic planning is important for not-for-profits to connect their mission to programs and establish performance measures. Popular strategies for not-for-profits include strategic piggybacking to generate subsidiary funds, mergers to reduce

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    Strategic Issues in Not-For-Profit Organizations

    Uploaded by

    Boyd Mearns
    137 views11 pages
    This document discusses strategic issues in not-for-profit organizations. It defines not-for-profits as organizations that provide services or goods without the intention of earning a profit, while public sector organizations are not-for-profits created and regulated by the government. Not-for-profits make up a large portion of the global workforce and provide important services that for-profit companies are unwilling or unable to. However, they face challenges in defining success, fundraising, and attracting talent. Strategic planning is important for not-for-profits to connect their mission to programs and establish performance measures. Popular strategies for not-for-profits include strategic piggybacking to generate subsidiary funds, mergers to reduce

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    A powerpoint about NFP Organizations

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    This document discusses strategic issues in not-for-profit organizations. It defines not-for-profits as organizations that provide services or goods without the intention of earning a profit, while public sector organizations are not-for-profits created and regulated by the government. Not-for-profits make up a large portion of the global workforce and provide important services that for-profit companies are unwilling or unable to. However, they face challenges in defining success, fundraising, and attracting talent. Strategic planning is important for not-for-profits to connect their mission to programs and establish performance measures. Popular strategies for not-for-profits include strategic piggybacking to generate subsidiary funds, mergers to reduce

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    137 views11 pages

    Strategic Issues in Not-For-Profit Organizations

    Uploaded by

    Boyd Mearns
    This document discusses strategic issues in not-for-profit organizations. It defines not-for-profits as organizations that provide services or goods without the intention of earning a profit, while public sector organizations are not-for-profits created and regulated by the government. Not-for-profits make up a large portion of the global workforce and provide important services that for-profit companies are unwilling or unable to. However, they face challenges in defining success, fundraising, and attracting talent. Strategic planning is important for not-for-profits to connect their mission to programs and establish performance measures. Popular strategies for not-for-profits include strategic piggybacking to generate subsidiary funds, mergers to reduce

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 11

    Strategic Issues in Not ForProfit

    Organizations

    By Jerard Boyd Mearns and


    Revi Pearl Genolos

    ofearning
    SectorAn
    funded, an
    What are Not-for-profit Organizations and what
    are Public-Sector Organizations?

    Not-for-Profit (NFP)An organization


    that provides some service or good
    with nointention ofearning a profit
    Public SectorAn NFP created, funded,
    and regulated by the public sector or
    government

    Types of Not-for-Profit Organizations

    Significance of NFPs
    Account for 1/20 jobs in the world
    Number of jobs in the NFP sector is
    growing
    NFPs provide goods or services that
    forprofit entities are unwilling or
    unable to provide

    Importance of Revenue Source


    NFPs dependent on dues,
    assessments or donations for their
    revenue sources
    May not be a direct link to the user of
    the service and the source of funds
    Pattern of influence is derived from
    its source of revenues
    Those who fund the NFP are likely to
    have significant influence on its
    operations

    Management Challenges of the Non


    Profit Enterprise
    Defining and measuring
    success(economic stability and
    growth is a subsidiary goal).
    Raising funds cannot sell the
    company shares
    Attracting and motivating people
    given the often limited resources and
    then on distribution constraint (no
    profit-based incentives)

    What is Strategic Planning?


    The process of developing a
    comprehensive document that sets
    forth what and organization is working
    to accomplish and how it intends to
    succeed.

    The Strategic Plan


    Connects the mission and the
    programs
    Establishing performance measures
    that are understandable to all
    Encourages strategic thinking the
    best allocation of scarce resources

    Usefulness of strategic planning to


    NFPs
    Portfolio analysis may be more difficult
    to apply to NFPs
    Situation (SWOT) analysis,
    missionstatements, stakeholder
    analysis, and corporate governance
    are all relevant to the strategic
    assessment ofNFPs
    May be difficult to apply where the
    output of an NFP is difficult to measure

    Constraints on
    StrategicPlanning
    Service is intangible and hard tomeasure
    Client influence may be weak
    Strong employee commitments to a
    cause may undermine allegiance to the
    employing firm
    Resource contributors may intrude on the
    organizations internal management.
    Restraints on the use of rewards and
    punishments

    Popular NFP Organizations


    Strategies

    Strategic piggybacking
    -Develop a new activity for theNFP that would generate
    funds to make up the difference between revenues &expense
    -Purpose is to subsidize primary service programs
    - Requires the following:
    Critical mass of management talent
    Entrepreneurial attitude & skills
    Trustee/board/sponsor support
    Venture capital
    Mergers
    Merging with an organization with a similar missioncan help
    to reduce administration costs
    Strategic alliances
    Developing cooperative ties with other NFPs

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