Working in the non profit world for a few years now I'n notices that the financial paradigm of: Organization - Donor - Target Market seems to have a very interesting form. It's interesting to be because it's so different from the for profit for of: Organization - Donor=target market=customer. Meaning, while in the for profit world the costumer sponsors the company, and thus is in the companies center of attention, in non-profit the donors sponsor the organization making them the center of attention and replacing the target market.
This results in many problems when the main 2 are:
1. The aim of the organization is being missed because the target market, the people who actually need the services of the organization, become secondary to donors.
2. No donor = no money = no organization. At times of global financial crises it's abundantly clear that this is not a sustainable model.
The question is what can be done? and while it seems that the answer is clear, build a business model, many organizations are simple afraid to do so. This seems to be the result of the aversion that the non profit world has from for profit mindsets, frameworks of thought and work structures.
In order to overcome this challenge I want to suggest one framework of though and one tool:
* Social Business Model: this logic model is made up of 4 parts: inputs, activities, outputs and outcomes. Each part makes up the basis to be used at this tool -
* The Non-profit Business Model Canvas: This tool is based on the Business Model Canvas which helps companies and organizations plan their budgets and is aimed at refocusing the donor - beneficiary relationship. Personally, I believe that it's good to use both tools (non-profit canvas and regular canvas) in order to understand how to make an organization more self reliant and thus sustainable for the long-run.
Here's a short 'How to"