Term Paper: Non Profit Management

Pages: 5 (1461 words)  ·  Bibliography Sources: 1+  ·  Level: College Senior  ·  Topic: Business - Management  ·  Buy This Paper


[. . .] As mentioned above, leaders of non-profit organizations have to extensively rely on external sources of funding to meet the demand of the society for human services; they must get engaged in activities. Fundraising, however, is not a very pleasant job to do. It requires considerable effort on the part of the top management of the organization. They have to allocate sufficient amount of time in fundraising activities, which makes it very difficult for them to keep a balance between fundraising activities and other organizational assignments.

Non-profit organizations seek for several sources of funding. The primary source is grants awarded wither by the government, charitable foundations or even corporations, to support specific social development programs. Although, grants provided by the government are based on a rough estimate of the cost of services provided by a particular agency but funding awarded by corporations are to be used with caution as the organization has submit a report on the program's activities and expenses incurred during the program. In addition to these major sources of funds, non-profit organizations contact individuals as well for donations. These donations are collected either through establishing close relationship with the community members or by asking individuals to become a member of the organization. Although donations are small in volume but they come from a large number of people, making it a significant source of funds. Even within the individuals there are some people who make sizable contributions and are referred to as "major" donors. Organizations usually allocate substantial time and energy to attract such major donors. Several special events are also organized by these organizations to raise funds. (Dove, October 1999)

Fundraising is a full time job and therefore may distract the attention of organization's leaders from other important activities such as organizing and managing different human services programs. If the leaders will get increasingly involved in fundraising activities, devoting lesser time to operational tasks of the organization, their subordinates will loose direction. This will in turn negatively affect the performance of the organization and will limit its ability to effectively make positive contributions for the society. To increase the efficiency of the fundraising efforts non-profit organizations should strive to bring improvements in their programs. In addition to this, the leadership of the organization should be committed to achieve its goals or objectives.

Some other challenges faced by non-profit organizations include lack of sufficient resources to compensate the leadership, lack of managerial training and inability to seek outside advice or consultation. Lack of funds limit the ability of the non-profit organizations to attract, retain and compensate management officials, which creates several administrative problems. As the career in non-profit organizations requires hard work and offers little opportunities for career advancement, few of the talented individuals stay in this profession for long. This is the reason why non-profit organizations lack managerial expertise and training. Majority of the individuals working in non-profit organizations are from non-management discipline and therefore do not have the necessary skills that are required to run a non-profit organizations. Another problem is that majority of the non-profit organizations are hesitant to spend money on hiring outside management consultants, which again creates administrative problems for the organization. Sometimes these organizations do not have the choice of hiring outside consultants because they simply do not have sufficient budget for it. (Weinstein & Hartsook, February 2002)

To overcome these obstacles, leaderships of non-profit organizations should take measures to resolve the problem. To attract talented individuals, these organizations should offer some additional perks, if they cannot offer high compensations. Moreover, they should spend some money in training their staff so that their resources could be effectively managed and programs could be managed effectively. Outside consultants should also be hired so that internal problems of the organization could be identified. Even if any organization cannot afford to hire outside consultants, some low cost volunteer assistance can also be helpful.


Kent E. Dove: Conducting a Successful Capital Campaign: The New, Revised and Expanded Edition of the Leading Guide to Planning and Implementing a Capital Campaign: Jossey-Bass: 2nd edition: October 1999

Stanley Weinstein & Robert F. Hartsook: The Complete Guide to Fund-Raising Management: John Wiley & Sons: 2nd edition: February 2002

Michael Allison & Jude Kaye: Strategic Planning for Nonprofit Organizations: A Practical Guide and Workbook: John… [END OF PREVIEW]

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