Business Models And Nonprofit Organizations

There are many international nonprofit and non-governmental organizations that educate and intervene with the global healthcare, with this and several other issues; there is also a huge impact pertaining within the issues that lye under the United States healthcare system. Nonprofit and non-governmental organizations strive to improve and analyze all the issues, there is much effort put in behind all of the organizations that are associated with improving education and global health care.

A business model is an important and integral part of the business a strategy of any firm whether big or small. The way a business model is developed determines and indicates the values, ethics and principles on the lines of which the business at large will be operating. It also indicates how the business is going to function and covers various internal and external dimensions of a business and the organization as a whole.

Business models have a huge impact on how an organizations operate. It is crucial that an organization chose a business model before inception in order to succeed. Basically, business models have become the new basis of competition, replacing product features and benefits as the playing field on which companies emerge as dominant or laggards (Plantes, 2013).

You and I both have many of the same views when it comes to the non-profit world. I must say that my opinion stems from working in this arena for quite some time. Although some frown upon non-profits, I thoroughly have enjoyed my work experience at my current agency, as well as other non-profits I have worked with in the past. I currently work for a Child Advocacy Center, which provide services to child abuse survivors and their families. This is a topic that many like to turn a blind eye and deaf ear towards. I believe our agency has the ability to help those families in crisis understand that their lives are not over and they can live again, even though they may have experienced such horrific trauma.

Business model defines the process by which the business enterprise or an organization creates, delivers and captures the value, which excites the customer to pay for the value provided and converts those payments into profits. In simple terms business model is a simpler representation of a business logic which represents what an enterprise offers to customers, how it reaches them, through which activities, resources and partners it achieves the value and how it earns money.

Non-profit organizations are the way of life, they are the reason why people of society care about the “little” people. Individuals who start a non-profit, usually start with the mission of helping others. They want to make a change in the world and be the hero that helps every individual who is struggling or trying to cope with life. Some non-profits are not as sappy as others, but most are geared towards community building and forming relationships. The relationships that are formed last for a lifetime, mainly because of the rawness of the individuals within the organization.

Making a systematic change in society is a lot easier said than done because making a large-scale change is a non-linear process since there is not “one size fits all approach” (Rossiter, 2014). Seeing results for a chance in society will require time, effort, unyielding outreach, persistence, and commitment.

A case statement is a written document that states the most important facts about an organization, this includes the organization’s mission, vision, and values. This document will tell potential donors everything that they would ever need to know about the organization. Every nonprofit organization needs a case statement. Case for support are essential for every nonprofit because this is what will help the organization raise money in order to carry out its mission. Without a strong case for support, potential donors will less likely donate towards the cause. In fundraising the case of support will tell a story signifying why the organization’s mission and vision matters and why the donor should even care about this particular cause. More often

A non-profit organization has many goals in mind. Usually, these individuals involved in these organizations want to work together as a whole in order to achieve the same not for profit goal. They wish to advance a particular social cause or support a point of view. These institutions take monies given to them to further these causes rather than redistribute them throughout the advocates or people invested in them. These features can be very beneficial IF the majority of those around them wish to further the same causes and point of view. This is the only way to be sure to get donations time after time in order for the organizations to continue to

Non-profit organizations play an important role in communities by filling in the gap of service need. These organizations are created to serve the public by financial means that otherwise would not be available. Nonprofit organizations are funded by donations, grants, and sponsorships that support the operation and mission of the organizations.

Nonprofit Organizations are supposed to be submitted to financial management principles, which govern all organizations. However it seems that most of the times, nonprofit organizations work in violation of these principles. The budget management and the respect of financial policies are the most challenge in nonprofit organizations. Since some stockholders who provide financial resources to nonprofit organizations are not more severe about financial management, nonprofit organizations have tendency to focalize their effort to the management of program and minimize the respect of financial principles.

Non-Profit-Organizations (NPO’s) often rely on the support of donors and volunteers who pursue a mission that is derived from values and principles. (Worth, pg. 6) The economic model and the voluntary spirit model are contrastingly different. The economic model is referred to the growth philosophy, encompassing the market mechanism and organizational hierarchy. This model operates on the premise that there are three basic types of incentives to include materiel services (money, goods and services), solidary (social interaction) and purposive (rewards from participation). In addition the model mimics that of the private sector by highlighting marketing and competition by nonprofit organizations. Hence the hiring is “hierarchically organized professional staff determines the goals and activities of the

Nonprofit organizations have several functions, and not each one is alike. Essential to all non-profit organizations are four functions: planning, budgeting, funding and management.

However, this paper chooses this definition as theoretical perspective of analysis for this paper subject to the following modifications: A business model is overall framework and philosophy by which a company (intends or) creates value in the market place through enhancement of its own combination of raw or in-put materials to create products (tangible and intangible including services), product packaging and systematic distribution in order to generate some or the best possible profit.

The origin of the term “business model” can be traced back to Peter Druckers classic 1954 book, the practice of management where it has evolved due to the emergence of new technology and modern consumer.