org/2005/02/should-nonprofits-seek-pro..
https://www.snpo.org/funding/earnedincome.php
https://learning.candid.org/resources/knowledge-ba…
Instructions for this Discussion
For this discussion, respond to the following:
Many social scientists and public officials have increasingly grown concerned about the degree to which organizations in the nonprofit sector are acquiring the traits of the for-profit sector. Writing in the Harvard Business Review, Foster and Bradach (2005) echo these concerns arguing that “sending social service agencies down that path jeopardizes those who benefit from their programs–and it harms society itself, which depends for its well-being on a vibrant and mission-driven nonprofit sector.” What are your thoughts on this debate?
Do nonprofit organizations have the choice to opt out of competing for earned income? What would be a better balancing act for nonprofits, especially those who concern with their financial stability?
Your initial post should be at least 250 words. You will also need to post a response to at least two of your classmates’ posts.
Also, make sure that your response(s) are substantial and consist of at least 100 words.
Responses to these organizations
1. I think nonprofit organizations should have the choice to opt out of competing for earned income. Earned income is define as revenue generated from the sale of goods, services rendered, or work performed. After reading the pros and cons of earned income it should be decided on a case by case bases depending on the nonprofit organization. If they have services, goods, or other things they could offer to make a profit, then it could be a good thing to consider. This will increase the organization image and visibility as well as diversify their offerings. If it is going to create more of an issue with being to time consuming, costly, or use up to much of the organization’s resources, it should not be something that the NPO spend to much time on. Your organization must have a good level of management and have everyone on board in agreement in order to carry out this plan. It could make or break the enterprise.
For those organizations that are concerned about their financial stability, they should review the options to partner with for-profit organizations/businesses as a way to gain income, supplies, or resources that they could use in there organizations. They should evaluate the goods and services that they have to provide, so that they can attend community events, concerts, and other social affairs. This will give their organization the attention that it needs to possibly partner with local venders, build community trust, and establish a rapport with business owner, community, and bank or other financial supporters. Lastly, they should think about a fundraiser that they could do that will help capitalize their funds and overall recognition without depleting what overhead they have or workers/volunteers.
2. My personal opinion on this debate is very mixed. I see the need for developing those factors in a non-profit organization but I also see the cons from acquiring those for-profit traits into your non-profit organization. I see how these opportunities can be vital to a non-profit organization by giving it that financial stability to be able to serve the organizations overall mission. It can also cause these organizations to mix the priorities of the organization up if they become to dependent on these other methods for financial stability. As long as the organization continues to serve who they are suppose by continuing to push the mission of there organization, then I do not see any harm in acquiring these traits overall. The organization will continue to have to stay grounded to not allow that mission to be lost in these new found ways to serve the organization. I certainly believe non-profits can opt out of earned income. I believe these organizations will still have the ability to continue and thrive even without that source by continuing to do what has worked for years. That’s continuing to pass that mission on by word of mouth, through the donors, and holding special events to show the community the purpose of the organization. Non-profit organization’s can look around themselves in their surrounding communities and discover numerous ways to still hold onto to that financial stability without ever having to do earned income. These organization’s just have to make themselves known throughout the community and the surrounding communities. That’s why I believe special events like fairs, community movie shows, and community sporting tournament events can help the organization receive any funding that it needs. In the process of holding these events these organization’s could even pick up new donors because they would be able to show case to people what the purpose of the organization is.