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Importance of the Non-Profit Sector (NPS)
The sector is the channel by which the altruistic intentions of the affluent and charitable are fulfilled. Most beneficiaries are the groups in society who are incapable of livelihood like the sick, old and very young.
The NPS does not have a pressure to minimize expenditure like that of salary. The non-profit organization can provide more employment than a similar sized profit organization. It is labor intensive mostly focused in health and education. (The role of the nonprofit sector, n.d.)
It is an important partner to the government in its delivery of social services. It provides the existing structure, organization and delivery capability wherein the government can simply provide its financial resources through grants and donations. (Cohen, 2010)
The NPS contributes a significant portion to the economy. In the US, it is around 5% providing employment, buying goods and services from suppliers and borrowing from the financial sector. (Philantrophy News Digest, 2014)
Resources for Strategic Piggybacking
There must be a tradable business proposition in terms of a product or a service. With regards to this product or service, the organization will behave like a profit-oriented organization until the revenue objectives have been achieved.
The capable human resources must be in place that can manage and run a profitable operation. After acquiring the tradable product or service, talent must be acquired for marketing, production, procurement and finance.
Even for a limited time, the organization must be imbued with a culture and spirit of entrepreneurship that will guide everyone involved. This is a task for the top management who will initiate enterprise-wide change.
The management of the organization can only succeed in the revenue-generating initiative with the support and motivation of the major shareholders. These are the members of the board of trustee who advice and guide.
As like profit-oriented enterprises, financial resources would be essential to support the business of the organization. Venture capital can be sought from investors with the promise of earnings from the expected profits.
(Strategic Issues, n.d.)
References
Cohen, T. (2010, February 22). Nonprofit Sector Needs to Be Better Understood. Retrieved December 23, 2016 from https://ssir.org/articles/entry/nonprofit_sector_needs_to_be_better_understood
Philantrophy News Digest. (2014, October 30). Nonprofit Sector Contributed 5.4 Percent of 2012 GDP. Retrieved December 23, 2016 from http://philanthropynewsdigest.org/news/nonprofit-sector-contributed-5.4-percent-of-2012-gdp-study-finds
Strategic Issues in Not For Profit Organizations [PowerPoint slides]. (n.d.). Retrieved December 23, 2016 from https://www.scribd.com/doc/24889835/Strategic-Issues-in-Not-for-Profit-organizations
The role of the nonprofit sector. (n.d.). Retrieved December 23, 2016 from http://www.irp.wisc.edu/publications/focus/pdfs/foc112f.pdf
