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MANAGEMENT IN NON PROFIT ORGANIZATIONS (NPO)
Nonprofit organizations (NPO) are neither governmental nor business organizations but are often dedicated to a specific mission. It ranges from those propagating religion to rehabilitation of war victims. While for-profits focuses more on activities to maximize profit, Nonprofits focuses on matters of board development, fund raising and volunteer management. They require managers who can rise above the profit motive and commit to the mission. Professional training for those at the helm of NPOs becomes necessary because the achievement of their mission depends on the fusion of strategic planning, marketing & communication and human resource management. The working of the NPO revolves around the public confidence fostered by the NPO; loss of it and a damaged reputation are probably the most disastrous results for an NPO, which are caused usually by poor management.
Strategic planning focuses on setting realistic goals in sync with the mission and a pathway to achieve them. Strategic means being aware about the organizations objectives and resources, and incorporating both in its activities. Development of the strategic plan greatly helps to clarify the organizations plans and ensure that key leaders understand them. For an NPO like Green peace, committed to the environmental causes, it would be to encourage research to promote its causes and conduct protest activities in non-violent ways.
NPOs requires marketing managers to create a strong, appealing brand image, which can draw people to the organization. NPOs should distinguish themselves from others and establish an image of the organization in the mind of donors, clients, constituents, volunteers, and others. Branding helps an NPO define itself, say what it stands for, and present its value to the community it serves. It has the power to influence people’s decision to give to the organization, participate in the programs, invest in the capital campaign, buy event tickets, read newsletter, volunteer their time, and more. CRY has effectively branded itself as an organization, which put its funds to good use, solely for the relief of underprivileged children so much that the donors do not think twice before donating their money to CRY.
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The HR management in an NPO is another important aspect because the most lucrative incentive an NPO can provide is the job satisfaction arising out of its activities. It includes proactive management of volunteers including the recruitment, providing guidance, training and development of a diverse workforce. They are in charge of establishing a clear organizational mission, forming the strategic plan to accomplish the mission, overseeing and evaluating the plans success. In short they are the backbone of an NPO. For an NPO like Make A Wish Foundation, the hard work and commitment of 5000 plus volunteers around the world enable it to continue granting more wishes to children with life-threatening medical conditions each year.
Ironically it is various business institutions that have started programs to learn about the management of the NPOs. Harvard, Yale, Stanford, Kellogg’s are the top most b- schools offering programs in Management of nonprofit organizations. Apart from these, an independent organization, Association for Research on Nonprofit Organizations and Voluntary Action (ARNOVA) also provides training and support to leaders from the non-profit sector. In India institutes like TISS and XISS provides training in Social Work (MSW) but the management in the social enterprise sector is not emphasized.
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