The Non-profit sector had a 'honeymoon period' in terms of funding resources during the 60s; however, it has been subject to severe changes in their funding environment since the 80's (with some brief moments of relief in the 90s), hindering their operation capacity overall. Following the sense of Darwin's quote, it is imperative that nonprofit organizations adapt to this "new environment of scarce resources' and learn to function without lowering the quality and effectiveness of service or otherwise they will disappear.
These changes occurred in several aspects including (but not limited to) funding, competition and technology. Given this wide range of changes, nowadays non-profit organizations have (instinctively) implemented a number of measures to cope with them. For example, acquiring funds via services and products sale and implementing marketing strategies to secure customers.
While it is true that using for-profit practices may eventually threaten the fulfillment of non-profits' mission and generate legitimacy erosion, it is also true that it depends on non-profits' managers to show great skills to success in fulfilling their mission as much as to raise funds and keep the organization financially viable. Moreover, this responsibility extends to the board of directors (or trustees), who are expected also to provide leadership to preserve the health and life of the organization.
Personally I see the initiative of seeking funding through for-profit strategies as a good alternative to overcome problems associated to reduced government funding and revenue volatility (as a result of the instability of individual and corporate contributions)... I see it as a way to adapt to the changes that are occurring in the environment and that will probably continue for much longer.
I agree with you, Richard. As we have learned in last semester, for a non-profit to survive in the competitive market, filled with for-profits, it is very important for the non-profits to find a way to secure their survival. However, non-profits can not totally depend on their donors, because the donors may stop giving support any time.Therefore, the non-profits should find ways to generate income by themselves so that they wouldn't be vulnerable to their donors. Although engaging business may sort go against their mission, they can use the profits that they make from the business to fulfill their mission.
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