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Should a non-profit always operate like a business?

David Morgan EIC (Editor-in-Chief) and Lead Consultant at I'm a business development consultant (working across sectors) who likes to help charities (P/T) when the opportunity arises Posted 4 years ago

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CharityConnect: Should a non-profit always operate like a business?
Hi Everyone

In the 'commercial' world, life (for many - and I'm not talking 'Bosses' or shareholders etc) is tough, nearly if not as tough as it is for our Sector. So many are worried about their jobs, just keeping some income coming in so that they can pay their bills
We've lost much of the donated and fund raised income that we expected - and you know how many more people (and places and animals) need what you do. You are trying to help as many people as you can

All that said, our Sector can do things differently, make changes which will give us a better 2021, and a more sustainable long term future. We need to innovate - we need to adapt - we really should try borrowing the best ideas we can find, even if they come from worlds we wouldn't normally look to
This is an in-depth take on why your Charity could not and should not 'operate like a business'
Its a link you'll also find on this (again in-depth) look at the question of being more business like. It includes a list of 7 reasons Charities/NFPs fail -  then 11 ways to use business (for profit) techniques to be a better Charity (more business like - be more effective)
The first analysis actually highlights two real strengths our Sector should make the most of - the commitment of often lower paid (than they would be elsewhere) staff and the love that is behind an awful lot of volunteering. It can all be summed up as 'making a difference' - wanting to do so and being given a chance, an opportunity
This is actually what the 'commercial' world is desperate for!
The future of retail (when the Armageddon is over) wil be shops where more staff actually help you make the best purchase (for you) that they can. It will be the same when you buy any level of software (or even hardware - things like mobile phones) - what you really need. When you go for professional advice, without prying (too much asking for - and finding/taking 'data') the expert you're talking to will really - really - need to have your trust
You and your Volunteers are - make that can be - brilliant at building relationships - getting trust - and then helping make changes - its called Customer Centricity in the commercial world.
Very few businesses will survive unless they do much better at embracing this all
That's why I'd recommend you go through the second analysis - about what business techniques are effective in our world - and make it a 2021 goal. If you want more on what you can borrow from the commercial world, please follow this Twitter account (@In12monthstime). Its the best FREE advice I can find
 
As a 'bonus' - or rather as an ask for something we still don't do perfectly - do take a look at this guide to "How to ‘Show, Don’t Tell’ for More Persuasive Copy"
I'm really sorry to have to write this but I see too much 'Telling' when I look at too many of our sector's websites
 
Hope End-of-Year Fundraising is going really well!!!
 
David
 
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