Non-Profit Organizations: Surviving in Difficult Times

Abstract

Non-profit organizations (NPOs) are constantly facing problems in today's market. These problems often come in two forms, internal problems and external problems. Internal problems almost always center around two issues: proper management and a lack of funds and/or resources. The first problem is the more pressing of the two, since good management can make ends meet with whatever funds they have. Management faces a couple of fundamental problems when they are running a NPO. The first is that the NPO is meant to promote values instead of profits. This is a problem because people often have different opinions on what a proper "value" actually is. The other problem is that very often they lack the funds to train, prepare, and properly compensate their own employees. Inefficient and incompetent management can kill a NPO. The external problems include financial crises causing people to stop donating, and for-profit corporations increasingly entering into job markets that used to be dominated by NPOs. Fighting these external problems is very difficult, since they often are caused by things over which NPOs have· no control. These include the overall state of the economy, the fiscal policies of the government and the rapidly developing technology sectors. NPOs should be mindful of these outside issues, but if they commit too much time to them, they risk wasting their already limited resources. Through my experience with NPOs, I have concluded that a NPO can be successful in any economic situation as long as they provide good service, have good management, and commit themselves to bettering others.