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Mission-centered
marketing
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We're Not in Kansas Anymore:
Not-for-Profit
vs. For-Profit Management
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Rarely do I read something written
about the nonprofit sector that stems from a deep understanding of its nature.
Too often analyses of the sector seem not to fully appreciate its under-capitalization,
the awesome burden of the gigantic challenge of most Mission statements,
the struggle to relate to a hoard of stakeholders, and being governed by
a volunteer Board that is often poorly trained and over committed.
We’re Not in Kansas Anymore is a refreshing exception.
Doug Borwick knows the sector, appreciates its uniqueness, and writes with
the clarity and truth that stems from having been there. It is a worthwhile
read – and a good one to share with all Board Members.
Don Wells, Director
Duke University Certificate Program in Nonprofit Management |
It is a serious mistake to believe that not-for-profit organizations are just like for-profits, only different. While management skills and concepts are transferable between the two sectors, there are a series of differences that cause them to be different species, requiring different approaches to management. This collection of essays, written primarily with not-for-profit board members in mind, helps clarify the special nature of nfp’s and makes their operation and special needs more understandable to those from a for-profit background.
Contents
What follows is a descriptive table of contents for this monograph, with links to the complete text.
I. It's the Mission,
Stupid! (Full Text)
The most important difference
is that the "bottom line" in not-for-profits is their mission,
not the balance sheet. Not-for-profits do need to operate
in the black, but in the legal sense [501(c)(3)] the mission is
the only reason they exist. As a result, all aspects of
management in the not-for-profit world--planning, budgeting, and
programming--must derive from the mission in a way even more critical
than is true for for-profits.
II. Failure Is Our Middle
Name (Full Text)
Another difference centers
around the not-for-profits' dependence upon subsidies and support.
This does not represent some failure on the part of the not-for-profit,
it is the reason it exists. Not-for-profits carry out programs
which demonstrate what economists call "market failure--enterprises
society needs but which cannot "pass" the market test.
III. Volunteers: Getting More than You Paid For (Full Text)
and
IV. Let the Punishment
Fit the Crime: A New Approach to Not-for-Profit Boards (Full
Text)
Not-for-profits' dependence
upon volunteers--both office (and other) "helpers" and policy
makers (board members)--represents one of the most crucial differences
between the sectors. Nurturing volunteers is central to
not-for-profit management and entirely foreign to the for-profit
world. An environment which promotes productive volunteers is
different from the corporate environment.
V. Human Capital: A Kinder, Gentler Approach to
Employee Relations (Full Text)
Almost without exception,
not-for-profits cannot afford to pay and reward staff in a
manner similar to equivalent for-profits. As a result, the
principles of personnel management in not-for-profits must be
considerably different than has been historically true in for-profits.
VI. Brother Can
You Spare a Dime? (Full Text)
Not-for-profits are dependent
upon support beyond generated revenue. Thus, a whole field
of activity exists in this sector for which there is no counterpart
in the for-profit world: the solicitation of gifts. The euphemism
for this endeavor is "development" and, whether seeking money or
goods, the enterprise is one which has its own unique considerations.
VII. If We Build
It, The Will Come (?) (Full Text)
Marketing is an area in which
for-profits and not-for-profits differ greatly. Many
not-for-profits take a product-oriented approach. This
means that they understand their function to be to support, preserve,
or provide a specific product or service. The organization's
loyalty is to that "product" as it exists in its currently understood
form. The unconscious mindset is that if the public wants
to buy the "product", that's fine, but loyalty to the product comes
first. (This is especially true of arts and educational organizations.)
For-profits take a much different consumer-oriented approach: find
out what consumers want and give it to them. This accounts for
the bewildering array of flavors, colors, and consistencies of toothpaste
one finds in the supermarket. A middle ground is needed.
Mission-oriented marketing takes into account the not-for-profit's
raison d'être as well as the consumer's
wants and needs. Then it evaluates current
programs and develops new products to serve both ends. In a
time of diminishing subsidies, this seems a particularly beneficial
approach.
Afterword: We're Not in Kansas Anymore (Full Text)
Substantial cost savings are available for bulk purchase. Consider giving a copy to every member of your board.
Price schedule:
1 copy
$8.00 (including shipping and handling)
2-14 copies @ $7.00 + $6.00 shipping
and handling
15-49 copies @ $6.00 + $10.00 shipping and handling
50-100 copies @ $5.00 + $15.00 shipping and handling
For larger quantities, contact us directly
NC residents, add 7% sales tax.
You may order copies by sending a check to:
Not-for-Profit Vision, Inc.
P. O. Box 11286
Winston-Salem, NC 27116.