PMA Consulting, LLC

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:

  1. Cash is always king.
  2. 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.
  3. Good Management and leadership really matter. Delivery of service, motivating and inspiring staff, and conceiving new directions for growth are equally important.
  4. Planning, budgeting, and performance measurement systems are vital.
  5.  Both face the challenges of integrating subject matter specialists into a generalist framework.
  6. Cash is king.