Key Similarities in Nonprofit & For-Profit
Recognizing similarities between for-profits and nonprofits is important when organizations are evaluating themselves. Patton McDowell & Associates encourages nonprofits to utilize the for-profit world’s “business sense” while educating board members as to the differences and unique governance issues inherent to nonprofit board membership.
Here are six similarites to consider:
- Cash is always king.
- Guaranteed success doesn’t exist. Both can grow, transform, merge or die and only sustained work will determine its fate. Both add value to society but in different ways.
- Good Management and leadership really matter. Delivery of service, motivating and inspiring staff, and conceiving new directions for growth are equally important.
- Planning, budgeting, and performance measurement systems are vital.
- Both face the challenges of integrating subject matter specialists into a generalist framework.
- Cash is king.