Increasingly, entrepreneurially minded Non profit leaders are bringing today the tactics of the private sector to the task of solving social problems. And with good cause: they need the cash.
Federal and state funding for Non profit dropped considerably lately after the 2008 crisis and it continues to decline. Similarly, corporate and individual giving has decreased, while social needs are on the rise. The Non profit sector is indeed under a lot of pressure. Costs are going up, resources are going down, and now we have people in need who weren’t around in the late decade.
Consequently, all Non profit are faced with trying to cure greater ills with even less money–or to find new ways to generate revenue and become less dependent on foundation and government grants. Some Non profit are even starting and running small, profit-seeking companies, channeling their earnings back into social-services programs. Many others are adopting private-sector management techniques in an attempt to get more mileage out of whatever resources they have. Either way, the new “social entrepreneurs” are creating hybrid businesses that blur traditional sector lines and uncover startling uses for marketplace power.
Greater accountability to clients: Non profit that do manage to generate earned income gain greater independence from the demands of funding sources, ultimately enabling them to be more accountable to the people they serve. Some nonprofits go so far as to gauge their services by actual market demand…….Read