Introduction
Over recent times, there was a global economic and financial meltdown and the United States was no exemption to this trend. Typical firms are usually motivated by the profit maximization objective. These firms usually respond accordingly to changes in the market conditions that affect their levels of profitability. However, this is not the case for nonprofit organizations. In spite of the financial challenges that they encounter, these organizations have to continue prioritizing service delivery to the public.
Statement of the problem
The nonprofit sector in the United States contributes more than $322 billion in wages and its workforce outnumbers the combined workforces of the utility, wholesale trade, and construction industries (Bridgeland & Reed, 2009). The efficiency and effectiveness of service delivery by organizations in this sector has been greatly constrained by the harshness of the impact of the global financial crisis.
Recommended Strategies
- Creating of a social fund to enhance the quality of service delivery by nonprofit organizations. The scope of funding should consolidate their partnership with government, private and other nonprofit sectors.
- Generation and innovation of new ideas and pilot projects that exploit the capacities of social entrepreneurs. This will help design new products that will meet the needs of the citizens in a cost effective way.
- Creating incentives to increase social corporate responsibility. By creating incentives that encourage private firms to participate in local social community initiatives, the corporate world can support the activities of nonprofit organizations. For example, private hospitals offering free periodical medical checkup to communities.
- Passing of legislation to allow for public participation in community programs. The government should work with legislators to pass laws that allow individuals of all ages to participate in national and community service.
References
Bridgeland, J., & Reed, B. (2009). Quiet Crisis: The Impact of the Economic Downturn on the Nonprofit Sector. Web.
United States (2010). Foreign policy and the global economic crisis. Washington: U.S. G.P.O.
